The GS chip was costing them about $25 bucks so they had to take that out to cut the price, also the PS2 can't cost more than 80 bucks to build, so they are making a good $50 profit per unit sold (at the very least $30), so they wanna keep that train going for a little longer, I'm hoping that either this fall or by Summer next year we'll get Software Emulation BC.

ya. i say maybe a 50$ price drop, but see bundle pack as well. isnt the 199$ xbox have a small or no harddrive in it?

It might not have a Hard drive out of the box, but one can be purchased and added later.

The Arcade does ship with a (flash) memory card though, but it's relatively small in comparison to an HDD.

We'll have a 399€ LBP bundle in Europe, I definitely think a 50€ price cut is possible.

100€/$ : No.

I'll put it nice and simple. It comes to the point they decide to reduce the bleeding and keep the price till they can reduce cost or go for market share and hope it works.

If they go for too much market share without turning meaningful profit and posting hefty losses they may anger share holders who may sell stocks which in great quantity could kill a company.

They've already reduced the production cost but they also moved the price below it. If they keep doing that they're absolutely sure to anger investors, not a doubt in my mind. Expect mid 2009 price drop but don't expect 100$