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Skeeuk said:

drive/slot loading drive + external psu + 60gig HDD + no wifi

^ thats all they need for a budget version

60GB HDD would cost more than the current 160GB to use, and wifi is a minute cost per machine.  External PSU is the only thing I see that could make it a bit slimmer, but still we are talking half an inch maybe? I'm not sure any of those things would be able to cut much cost though.  The major costs of the system are the BD drive, the Cell, and the RSX.

They can safely cut $50 off per machine and still break even or make a small profit without changing anything other than maybe a cpu/gpu die shrink or something.