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chapset said:
Sony is loosing to much on the 120 gig model, they want people to buy the 250gig at 399$ that's why they produce less 120 gig models

The 250 GB is $349.

Also I doubt there losing much or any on the 120 GB. The only place they'd be losing money is in America, the rest of the world I think there making money on each console by now, there priced higher then America. I'm sure there making a lot of money on software right now so that should off set the loss in America.