FYI, there's a rumor going around that in May, Sony will bring back the 40GB PS3 at $299!

Looking back at a couple old articles, this actually sound quite possible.

Currently the $399 80GB PS3 has a 65nm Cell and 65nm RSX GPU. These articles show both of these parts going down to 45nm early to mid 2009.

http://www.obsessable.com/news/2009/02/05/playstation-3-to-get-45nm-chips-by-middle-of-2009/

http://ps3.qj.net/Toshiba-to-manufacture-PS3-s-45nm-RSX-chips-by-2009-65nm-chips-by-next-month/pg/49/aid/108503

Moving to 45nm parts means they are cheaper to manufacture and produce less heat(which means they can slim down the cooling system further saving money)

So: 65nm Cell > 45nm = cheaper

      65nm RSX > 45nm = cheaper

      slim cooling system = cheaper

      80GB HDD > 40GB = cheaper

As the Cell and RSX are 2 of the most expensive parts in the PS3, it's seems very reasonable that these 4 factors could shave $100 off manufacturing costs:)

We shall see.

your 'evidence' is just pure speculation. the console is still selling at a loss despite hardware advances and dropping the price, as sony has said time and again, will put them into more red ink.

there will be no price drop in the foreseeable future. don't get your hopes up.

a 40GB HDD nowadays isn't cheaper than a 80GB HDD

Do they still sell 40GB's? :-/

I do not see he logic in bringing back a 40GB model. A 40GB drive is no cheaper than an 80GB drive.

I hope they don't cut the price. I paid $600 and so should you. :)

@ dbot: LOL!!!

You tell em!

I don't know which is worse, the constant daily threads about a $299 PS3 or the "facts" Mass Effect 2 is headed to the PS3.

If either of these things happen it will be a great day! It will mean rejoicing in the streets and everyone will live happily ever after. Until then people, we should just take the wait and see approach.

Seen those articles already.

Seeing as most retailers have been giving away free $50 gift card with a Ps3 or games/Blu-Ray movies that are almost near $50 to me means they will drop the price $50 soon. With the new chips, that's a different story.