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CrazzyMan said:
60GB model $599=>$499 Had ONE price cut.

80GB model $599=>$499 Had ONE price cut.

If you don`t understand that, then you are DUMB.

Regardless of whether you call it one or two price cuts it is misleading because it is not that simple ...

The PS3 launched with a 60GB model for $600 and a 20GB model for $200
The 20GB Model was discontinued
The 60GB PS3 saw a price reduction to $500 and Sony introduced an 80GB model for $600
The 60GB Model was discontinued and the 80GB model saw a price reduction to $500
Sony introduced a 40GB Model for $400

That's a lot of changes in one year...

 

Anyways, the original poster has a point (and one which I have made before) ... If you look at the difference in hardware components of the original 60GB PS3 and the 40GB PS3 [without considering the cost reductions of making the components] there is not a lot taken out which can justify a $200 price difference. So, in order for Sony to be losing less than they were on the 60GB they would have had to save about $200 on what it costs to manufacture the individual components; it is possible that they're losing less but they are still a very long way from making a profit on the system.