I can see the cost being cut in half from the initial production run for the 40 GB model vs the initial 60 GB. The diode, PCB changes, chip shrink, chip removal, slightly smaller HD (40 GB drives can be 80 GB drives where one side of the platter is not working), SACD removal (DACS price cut in half or more), removal of memory cards, USB ports, Power Supply redesign (since lower requirements). Also the the initial GPU + Cell costs look very high and I would expect these have come down a bit. The initial 800 cost estimates looked bloated (there was hundreds of dollors to come off the cost once production started to run smothly). Another 200 hundred is believeable with the 40 GB redisign. Don't focus on if this makes a profit. That isn't the point. I believe Sony could cut costs in half with the 40 GB vs the initial 60 GB.
RabidBunny
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