That's why I said only a $50 loss instead of $70 or more.
the older the hardware gets, the quicker the drop in cost of manufacturing.
wifi b/g, usb 2.0, HDMI 1.3, HDD... pretty much everything in the ps3 is dirt cheap now since theres improved versions of all those bits of hardware.
sony played a role in the creation of the cell and blu-ray so they must be getting massive discounts on those too.
I think they will atleast be breaking even the price drop, it would be stupid of them to start selling at a loss again when there is no need to since sales are good in comparison to other systems.
It would be great if the system with the larger HDD comes with wireless N.