It would be a very smart move by Sony at the E3 to bring back the 20GB PlayStation at the Price of $399 to compete with the Xbox 360 Premium. That would make the Ps3 20GB for $399, the 60GB for $499, and the 80GB for $599. And  they should do the same for Europe and Japan.

IMO they should redesign the PS3. Make it smaller, lighter, a lot less power consuming, therefore lower their own costs and by dropping the price with about 200USD, so around 400-300USD and of course a package full of mixed software for all kinds of gamers and not biased to a certain group of gamers only. To me "that" would be more appealing to purchase a PS3.

But like I said... that's my opion.

They certainly won't do that. Sony pays close to nothing for a hard disk, let alone for an antique 20 / 60 / 80 GB model. Their margin is much higher on the high end model, guess why? Because people pay 100 $ extra, while Sony's manufacturing costs stay almost the same.

It's a smart move isn't it?

I don't think bringing back the 20GB model to the market would do any good either. As far as I can remember it was the reason for Sony to withdraw the 20GB PS3 model... as it didn's sell. So... if most members here on VGchartz find the 60GB for 499USD still "too expensive" to buy, wouldn't you think they would say the same thing about the 20GB for only 100USD less?

Edit: oh Europe has "only" the 60GB and until the last announcements from Sony, Europe won't get the 20GB, perhaps the 80GB, but so far unknown.

Not necessarily... as I said before, the hard disk does not really matter. It's mostly an excuse for billing 100 $ extra. I mean, 20 GB? 60 GB? 80GB? I don't even know a computer store selling these in 2007. They must be dirt cheap for Sony.

But the retail price does matter, so for 400$, a lot of people would buy a PS3, but Sony would lose much more money on every unit. Too much, probably.