Sony is tightening down costs for the PS3- a report on the blu ray diode

[davygee]

HappySqurriel said:

Well, I have said for awhile that the losses on the PS3 were probably overestimated and I expect that after the early ("easy") cost reductions the PS3 will be nearly breaking even (including controller, cables, packaging and shipping). The reason I'm not expecting a price drop is that most of the "easy" cost reductions have (or soon will) have been made and it will take time to make the system dramatically cheaper. If Sony cuts the price of the PS3 they will be losing a pretty large ammount per system and as cost reductions alow them to break even they will be presured to cut the price again; in other words Sony would be forced into long term hardware losses. I could be wrong but I think a price cut would be an act of desperation from Sony.

I agree that it could look like an act of desperation, thats why I think first and foremost, Sony will be relying on the supposed AAA titles to be released this year.  If these don't help units sales in particular, then I think Sony will introduce a price cut.