starcraft said:
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You're right, but its actually MUCH more than that.
They're shrinking every bit of silicon inside the machine bar the CPU which is already shrunk.
They're cutting down the size of the heatsink on the GPU - which is a solid chunk of Copper IIRC. (Copper is expensive, weight adds to transport costs)
They're implementing a new motherboard - which should also save some money and give them the chance to HOPEFULLY and I think it should be quite obvious to them... add Wifi support. If they are really serious about Blu Ray/media playback they could add a small UVD chip to the console so it can play the Blu ray movies/any movies cool and quiet without having to call upon much CPU power.
Finally they can count them reliable so they can take that $10-20 they probably set aside for repairs and keep it as profit or take it right off the price. It should give the DVD drives a hand too since they sit right above the GPUs and I would say that removes a possible point of failure on the drives as well.
Tease.