Straight from exgen wordpress:

"Several posters at SlickDeals.net are reporting that the PS3 may have yet another price drop towards the end of the month. Many are rumoring that a $299 PS3 will be announced on January 28. SlickDeals.net is a website dedicated to providing consumers with the latest prices in electronics, breaking the news of both of the previous PS3 price drops and the 360 price drop a few weeks early, along with the CheapAssGamer forums.

Though it does seem early for this to occur, Sony did recently announce that the price of manufacturing of the PS3 did drop from $800 per unit at the launch to $400 currently. This is mainly due to the success of Blu Ray, especially with Warner Bros. going Blu Ray exclusive earlier this month. Now there are also rumors that Paramount found a loophole in their HD DVD exclusivity contract and will be going Blu Ray as well - leaving Universal and Dreamworks as the only remaining HD DVD studios.

Financially, the price cut makes sense, consoles have historically been sold at a loss until the tail end of their lifetime. The only consoles not sold at a loss are the Sega Saturn(sold at the price to manufacture) and the Nintendo Wii(sold at a $100 profit for Nintendo). Nintendo, Microsoft, and Sony make most of its money off of game licensing, not the actual console. For every game released, they developer must pay $10,000 worth of licensing fees to Sony(its traditionally been $20,000 for all 3 companies, but this was another cut Sony made to encourage developers recently). They also make a bulk of their profit from peripherals, like memory cards and controllers.

Still, I personally think it may be a bit too early for another price cut."

http://exgn.wordpress.com/2008/01/21/rumor-ps3-in-store-for-yet-another-price-drop/

If its true... then color me impressed.

And it would be a brilliant counter to the rumored "drop and give me 50"-price cut from Microsoft".

Could be an early GDC leak.

No way in hell :P Although if they did, we'd be getting another PS3 ;)

I don't think they should, just for my own sanity. It already pains me to see the PS3 at crazy prices like £299 or a PS3 with two games, when I paid £460 for one console, one game, one blu-ray film and a HDMI cable.

And at $299, wouldn't that be dangerously close to the price of the Wii?

Sounds dangerous to me. How much more can they cut and still hope to make a profit at some point in the console's life...

Here come the "NO WAY THEY DO THIS ZOMG" replies.

My question is, why you so scared?

If the PS3 "sucks" then matching price with other consoles shouldnt do anything for them right?

All i know is $800 production vs $500 sale is worse than $400 production $300 sale.

So they would still be in better position as far as losses go.

if this happens what effects could take place...

in USA I'm just losing confidence in the viability of Ps3

in EU.....$299 means £170

AND that would Push Ps3 sale beyond wii's!!

BTW, if they make 40gb BC with software, that would mean by the end of the year they would break even ProductionvsSale price (although, I know, they sell to retail for less than $299 if true.

There are few words to describe how happy that would make me.

Yey, im getting a PS3 in March so i hope it's @ 299 then already! ...