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PS2 sales have dropped to the point where they are nearing irrelevancy, so I doubt SCE's business plan relies up the PS2 in any way shape or form to buffer losses or subsidize hardware sales.

Someone will have to chase down the source, but allegedly SCE is currently making about a $50 profit on each PS3 sold.

I don't see a major ($100) price drop without a significant hardware redesign that's smaller, lighter, uses less materials, less silicon/die shrink GPU/CPU, less packaging, etc.

But with the current regular minor hardware updates, a $50 price cut isn't unreasonable by year end 2011.

Several major retail outlets are currently offering $50 rebates which is generally a hint that the regular MSRP may follow.