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Hmm, well, the reality is that all of the major consoles are manufactured in China, and the yuan has been reasonably stable against the dollar (which means a slight depreciation vis-a-vis the euro). So no firm really has an advantage here - they're all benefiting from the cheap yuan, and would all take a hit from a sudden jump in the yuan (say, 15%).

That said, Sony is moving extremely aggressively to cost-reduce the PS3 further. They'll have a $299/299EUR model out by this November, guaranteed.