I'm not sure why people are so unwilling to believe that Sony has lowered production costs so rapidly. Most/many of the parts in the PS3 were not used in anything else before and were very difficult to make because they were new. We've already seen evidence that Sony has cut costs by more than $100 on Blu-Ray diodes alone, let alone whatever other costs they have cut by improving the Cell and shrinking it as well as removing parts. Cutting $400 off the cost is pretty likely, actually, the only question is how much more can they cut it by.
Oh, and don't expect to see the results of this in the next financial report. It takes awhile for the effects of somethign like this to be felt in a company as big as Sony. The next quarterly report should make the PS3 loses look better on a per-system basis.
You do not have the right to never be offended.
