I don't think the hard drive is really the thing that's driving up costs.

Well, it can't hurt - can it?

What would you say is driving up costs that can be neutered? Obviously Blu-ray and Cell are here to stay, so what else (apart from the EE which should already be stripped) can the PS3 really do without at the POS that can be added by the user?

They can't drop the hard disk. Its a required component. Various games require it to be present - and Sony (like MS) want to push consumers online.

Another point - if Sony *do* release a $399 PS3 - that's a 33% price drop in the first 12 months of production. Doesn't bode well for a 6 year (let alone a 10-year) lifetime for the product.

I wouldn't be surprised to see a $399 unit - but only early into '08. 

(remember that Sony are selling part of their financial division, which can cover losses from the PS division if they occur).

I think the real question will be how MS (and to a lesser extent Nintendo) respond to this price drop. And also how consumers respond. 

Correct - but this would be different from the 360 Core system, which requires you to buy a proprietary hard drive. The PS3 accepts (if I'm not mistaken) any 2.5' Serial ATA hard drive, hence isn't proprietary.

What I was thinking was Sony could market this as the "DIY" PS3 - all you do is add your own hard drive and presto! You would still have to buy your own hard drive, but at least the perceived price point will be lower.

Anyhow, fat chance Sony would do such a thing anyhow. It is interesting though to try to figure out what else Sony can trim off the PS3 to lower its price... 

Put your famboyism aside and think a little, and i never said the big cut will come this year. 

 80gig will be 500 this year when the 60gig supply runs out everyone knows this.  They will cut price becasue they will be able to.   Smaller cheeper chips is when the big cut will happen.  That will easily cut 30% of the production costs making as big as a $150 cut be Cost-effective.  

We should keep this thread going til March to see what happens. It will be funny either way, if Sony does do it :P all the post laughing will be mocked if Sony fails, it's another Blow for us Sony Fans... Either way I think they have a chance. I think Japan will start to pick up on the ps3 sales.

I'll admit I'm way off my prediction of the Wii slowing down after 12 mil (like duh!!!) Although it does seemed to of slow down at the moment in JP. Maybe around 15mil we will see a dramatic slow down. :P j/k :P

Well this doesn't help either

http://www.gtplanet.net/forum/showthread.php?t=96425

Sony again say **** you to the rest of the world we only care about Japan. 

I was watching the TGS 07 xplay show, day 2, earlier this evening and I noticed they ran this same piece of analysis along the bottom newsreel. I was like, WTF, thinking about how misleading that would be to the average person who has no idea that sony hasnt even moved 5 million consoles yet worldwide. Someone who doesnt know better might be like..oh, they are going to have as many consoles as 360, maybe I should get a ps3 now...G4 really pisses me off sometimes. I also hate that fool Adam Cessler(sp?) on xplay, they should just have Morgan Webb. That guy seriously cannot stop making funny faces, moving around, and waving his arms around every time he is talking, or just acting spazmatic when Morgan is talking. It is really annoying. How did he get that job anyways? Total d-bag!!!

 Not official.

 Playasia here i come, region free.

I know it's not official but given the Japan version was delayed 2mths it definitely follows logic. Sony just don't release Gran Turismo games in EU and Japan at the same time, they just don't.