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albionus said:

Something to consider, if I recall (and I'm going by memory so I could easily be mistaken) the Dreamcast and GameCube both had to halt production after they had only sold, to consumers to make it clear to certain folk, 5-6 million with 5-6 million consoles in various warehouses. 6 months in and Sony is half way to that situation.


That's so true. It's tough to cut manufacturing costs if you aren't manufacturing in large quantaties. According to these figures there are currently circa 2M PS3s in circulation that haven't found a home yet so it's fair to assume Sony have cut back their manufacturing output.

Of course, the cost of components will trend downwards anyway, but it's basic economics that the more of a product you buy the less you pay per unit.