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A few comments:

1. The cut for the software kit is for all 3rd party developers, not just the indie developers of small games.

2. The price cut is probably able to happen because the PS3 has been getting more games coming to it. More games means that Sony will be able to spread the cost of the software kit amongst more companies, thereby creating a situation where it would be able to reduce prices. Although this may be true, cutting the price in half is a BIG price cut for developers, so Sony is also probably selling these at quite a bit below cost.



Thanks to kenobi after I got him to ban my old account (dallas) after someone hacked into it and being ok with me coming back under a slightly different username.  I appreciate our communication in the PMs.  Also I want to give a big thank you to vgchartz for being one of the cooler websites around. 

Oh, and I'm still the next Michael Pachter