Nice work , even if they can lower the 80 giga model to 499$ next March or so , the PS3 will pick up pretty damn fast in sales . I would see it outselling the X360 around May . But still , a 160$ development reduction is huge . Go Sony , go !

Well, sorry but all the costs seem to be calculated with end user price. $107 on the Blue Ray drive seems a bit high, should be under 100 by now. The HDD seems also $10 off, the price for logic seems heavy, but could be right.

But even if it is accurate, you can see how fast the production price will drop in the future. HDD seems unlikely. Blue Ray will most likely go down to 50 till 08. The biggest part is logic. And with 65nm it should come down rapidly. Most of the controller won't come down much (summed maybe $5). CPU and GPU should come down by $50. So summed by March 08 it should be another $110 of, at least. Drop to $399 in March seems possible, if not likely.

 Are you including VAT in your calculations? There may be some tariffs and increased shipping costs too.

 Yeah you've hit the bulls eye with your post Z64dan. They have to clear out systems manufactured at the higher price before they can even being to see the benefits of the lower manufaturing costs. They have made significant progress but they are still far from the mass market price point they need if they want to suceed. I don't see the PS3 hitting a mass market MSRP before the 360.