Currently there are two models.The 80gb costs $399 and 160gb costs $499.They are losing about $20-30 on the 80gb model but most probably making the same amount on the 160gb model.Sony hasn't cut the price for more than a year.But many are speculating that they will cut it this year and Sony's recent new leaks suggest the same.This is how I think they should cut it

In April 2009

80gb - $349

160gb - $449(Bring back the backward capability in this model,software or hardware emulation.Could also bundle Killzone with it or any other big tittle)

Before Fall 2009

80gb - $299

160gb - $399(Should bundle a newer game)

These scenarios are most likely but Sony could surprise us with $100 cut on both the models in April and then cut another $50 before Fall to counter Microsoft's price cut if any or just to increase sales.

I googled Sony's production cost and  found that it will cause Sony $320 to build 80gb in early 2009 and could decrease it to about $250-280 later in 2009 because of the continuous compresing of the Cell and the RSX chip.Don't have the link's now.Will find and post it in another thread on PS3's production costs.

While I'd like to see the 2nd scenario, the first is more likely. Then again, they could just have a single price cut of $100 in spring and nothing the rest of the year.

I also think LBP should be a permanent bundle once the console reaches $300 or lower.

f they cut the price at 299$ I will wait and buy a ps3 instead of a xbox360

We don't know how much Sony is losing per unit, especially since the analyses we have don't seem to take the exchange rates into account. There were widely circulated reports one year ago that the PS3 cost $400 to produce, so I don't see a reason to believe the current reports are any more trustworthy.

As for your scenarios...IMO both are only possible if the dollar/euro recover, and even then they are uncertain. Things are not entirely under Sony's control now, fortunately for them they're not the only Japanese company suffering from this so they may get external help too.

Just curious what you mean by external help...you saying the US government will give them an allowance too?

No, if anything it would be the Japanese government. But that's not what I meant, I meant the Bank of Japan could intervene in the currency markets to prop the dollar and the euro up. In fact they have mentioned that they are uncomfortable with the dollar below 90 yen (it's at 88.7 now).

EDIT - in other news it seems the Euro hit a new 6-year low against the Yen today (116.92 right now).

Ahh thanks for clearing that up..but isn't that like making your citizens poorer for the good of the corporation? Or is it of such importance that foreign currency is of a certain strength against their own or face a much broader economic failure?

Japan is an exports-based economy, so a very strong Yen is probably not good for them. Of course any intervention in the currency market can be risky, which is why I'm not sure about how much they'll really prop the dollar up.

This economic crisis is something we haven't seen before (not with the global economy), so all bets are off from my part... It's a clusterfuck of epic proportions. We just have to see how things play out (and take some precautions as individuals).

Sony are still selling the PS3 well though, just not as well as their competitors

i think the ps3 needs to get to 299 as fast as possible in ur april 09 thought having the ps3 150 more than the arcade will still make people choose the 360 over ps3 they need to be in that hot spot of 100 like it was at the end of 07 and most of 08