http://mygen.com.au/article.php?page_id=75602388148801047&format=4&se_id=29&rss=1

I called it babay!

**Update**

Heres the original article from Business Week about the new production costs. 

http://www.businessweek.com/globalbiz/content/jan2008/gb2008018_681920.htm?chan=search  

Interesting .As I predicted Sony has been able to cut costs way faster than MS .

Good news! Hope that their gaming division gets back into the black sometime this year, would be very good for Sony! :D

I doubt this is true. Sony would have break the big news all over the places...

mygen isn't exactly the most prestigious or reputable site. I had a look around and that really is the only information thats been released. It's strange because normally when groups like iSupply do a component cost estimate, they break down the cost quite specifically across components. All-in-all, while I'm sure Sony have successfully reduced the cost of the PS3's components, I wouldn't put to much faith in this estimate.

It what it cost this point in time to make components and stick it together. They gotta make alot of money back for the amount they must have spent R&D.

misteromar makes an interesting point. Even if the component cost estimate is accurate (and somehow I doubt it), it doesn't appear to take into account assembly and transport, which could equate to another $50 or so. On the other hand, we know that Microsoft is making a profit overall on each unit sold (though whether it is a significant enough margin to remain after their next price drop is doubtful).

Edit: The article says production cost which I assume includes assembly.  That though, in my opinion, makes the $400 figure all the more unrealistic. 

i doubt it--sony would be all over the place happy about this right now--and beside werent teh higher ups in the company not planning till late this year early next year to turn profit from the system?

Good for SONY if it is true though seems far fetch. Those blu-ray drives still cost a pretty penny but you never know. The quote I posted from kaz a few days ago said they hope to make money next fiscal year and that it would based on software as well so seems unlikely they are already making profit on the 40 gig. I think we should know soon though with their fiscal report coming out at the end of the month.

Reporters learn a few things about writing news stories. First, you need at least three sources for your story. Next, you try to see if the information from the sources are accurate and deemed reliable. Lastly, you ask the questions - who, what, when, where and why.

The OP's link is nothing more than a biased blog. It cites no sources and it really just a column of opinion. Please tell me this hasn't been Dugg. IT PHAILS, son!

Buried as inaccurate.