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Kerotan said:
The PS3 is turning quite the profit in it's last few years with extremely strong SQ sales plus the PS3 is way over priced. It could get a price cut and still make a profit. I wonder how much of the initial loses have they made back in the last few years.

PS3 total software will pass the Wii SW out pretty soon too.

I don't know about that. Without further shrinks for main components like the Cell or the XDR ram there won't be lower costs per unit and the PS3 sales are declining, which usually means higher costs per unit.

A shrink at this point in time might not make sense either, because it takes thousends of hours of work from expensive experts, several test runs to check and improve yields (also must pay for production lines not making money for the chip factory etc.) etc etc etc - it's a costly investment they might not make back, especially if they use reduced production costs per unit to offer the console at a lower price.