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The consumer electronics industry is littered with the carcasses of companies who underestimated Sony's cost-reduction prowess.

By this November at the latest, the cheapest version of the PS3 will be cut to $299/299EUR, and PS3 sales will skyrocket -- exactly at the point that PS2 sales will finally decline. You have to remember inflation: $300 in 2000 money is the equivalent, of 3% annual inflation, of $400 in 2009. So $299/299EUR is indeed a mass market price.

By November 2009, the cheapest PS3 will be $199/199EUR.