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Yeah thats true. But the analyst is doing it more from a pure cost and parts perspective I believe. So while Sony may have forecast this, the analyst has broken it down by the dollar and seen that they will be making a profit.

So ladies and gentlemen, by Christmas 08 we should see PS3's going for as low as $299, with Home preloaded, in game XMB, and your choice of GTAIV,MGS4,GT5P(awesome),Socom, Killzone 2, Resistance 2, White Knight Story. Also with a new Madden, new Rock Band, new GH, COD5 and with Final Fantasy and God of War right around the corner.

Saaaweeeeeeet.