I GUESS PRICE CUT OUT OF QUESTION?

http://www.gamedaily.com/articles/news/ps3-costs-10-percent-higher-than-price/

Andriasang.com is reporting that during an earnings briefing in Tokyo yesterday, Sony's CFO Nobuyuki Oneda said that the cost to manufacture the PS3 is roughly 10 percent higher than the system's price. While the price of the console is different in separate regions of the world, the PS3 retails for $400 in the U.S., which would make the cost to manufacture roughly $440.

The differential between the selling price and cost to manufacture is very close to what certain analysts have estimated over the past year. Oneda also noted that Sony has plans for more PS3 cost savings down the road.

Addressing the issue of PSP software sales, Oneda noted that the system's attach rate was below that of the competition. The Sony executive added that the company might improve this by making the system capable of playing PS3 and PlayStation software, which could be referring to downloadable PlayStation Network titles, PSOne titles available on Game Archive, or PS3's remote play feature.

I would be shocked if Sony cut the price of the PS3 without either:

A) a redesign that drastically reduced the cost of production or

B) they wait until the current model of the PS3 manufacturing cost are reduced further.

I'll guess will just have to wait and see what Sony has in store at E3.

This is unfair for Sony... sure they shouldn't have released a $600 console in the first place, but with all these cost saving methods and price cuts they've already done they deserve to get a little profit by now.

They already lost a massive $600 million in 2008, Im not sure if there willing to lose another billion in 2009.

I wonder how much the exchange rate affects those numbers...

$40 is not bad, but $140 will be terrible

Well once we get that 45nm chip and a slim model comes out that should cut production costs enough for at least a $50 price cut I would hope. I don't know I'm not a scientist

^I dont think its real

What's the attach rate for games on the PS3? Like 5 something? They should be generating some profit if the cost difference is only $40....and that's just from PS3 software

So about $80 loss per machine sold in the US once shipping and handling costs are taken into account and remembering that Sony sells the PS3's for less than $400 to retailers