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Makes sense. Production costs of all these new parts and changing the manufacturing line add up a bunch of costs that slowly erode as more are sold and the process is refined. I'm sure it will be down to a $50 in a few months and down to breaking even by 6-12 months from now.

I also love how any analyst who gives good evidence of a PS3 still losing a significant amount gets shunned and must be drunk. The 70% figure was never clarified and all people claiming PS3 Slims cost $250 to produce were purely speculating.

And before some fanboy cries fowl, I'm not hating on the PS3. In fact I'll be getting a PS3 Slim in a few months, I just choose to have a rational mind and not refuse any idea merely because it does not fit what I want to believe.