Simple production costs aren't all costs: you have design, logistics, marketing, sw and hw development, Sony is developing games with its 1st party studios and for those still to be launched you have only costs right now, most probably they are developing the slim version and they'll have also to co-finance IBM for Cell's production process improvement and shrinking to gather bigger savings in future, etc. Pure components, labour, warehousing and shipping costs aren't everything, but they are the ones that are directly tied to the production of a single unit, while the others are fixed.

I think that's a terrible idea.  Just because of the way you described the 'economy' model.  1 usb?  Have you ever used a ps3?  I normally have 3 things plugged into mine at once..2 would be pushing it for me.  You'd also have to have at least 40 gigs..again, have you ever used a ps3?  20 gigs won't get you anywhere..why do you think the 20 gig model was discontinued so quickly?

I also think it goes outside of Sony's plan to create an 'economy' model.  That being said, by time they do this rumored price cut, yes they'll be losing money on their consoles...but how much?  If it's something small, like say $20-30 per console, that's worth the sale.  It'll boost sales so much that the software side will make up for it.