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HappySqurriel said:
A large portion of why people believe there has been 2 price reductions is because Sony (and the gaming press) sold the introduction of the 80GB (and reduction in price of the 60GB) and the introduction of the 40GB as price reductions.

Ahhh but therein lies the difference between the average American consumer and fanboys. Besides $200 price drop is a lot easier to write than:

The PS3 launched with 2 levels at price points of $500 and $600 dollars, one of them either wasn't popular or vastly under produced and consequently sold poorly resulting in it's discontinuation. Then a new model was introduced and the current $600 model was reduced in cost $100. When this sold out the new model was dropped $100. Then a new new model at an even lower price point of $400 was introduced.

 

 

And it's a $200 price drop because people weren't really buying the 20gb either due to lack of stock, poor advertising of it or because it was deformed at birth. Basically it would be equivalent to MS selling a 10gb at the old core system price and claiming no price drop had occurred, true but total crap as far as customers are concerned.