PS3 production costs decreasing 70%... does that mean it's profitable?

[NJ5]

Slimebeast said:

JEDE3 said:
lol slime - Sony wasn't losing 100 on the phats. They wont go more on the slims. And NJ5 also said sony would only drop the price 50 dollars this year.

Yeah, NJ5 actually tricked me into believing in a $50 price drop for a while when he kept pumping out those Sony doom threads. But the whole time, apart from a short period, I've been a firm believer in a $299 PS3 in Aug/Sep (that prediction is well documented in my post history). The Slim took me by surprise though.

On PS3 phat I believe Sony was losing at least $50 at the $399 price. So even if they're saving $100 by making the Slim, it still would cost at least $350 to produce.

But all is good, they can make those $50-100 back on periferals and software license revenue.

You must have been reading threads from someone else, because in December 2008 I was already predicting a $100 price cut:

http://www.vgchartz.com/forum/thread.php?id=53209