Oca - Both.

They could have been talking about the big PS3 a few months ago. If they are talking about the Slim, I could see this being true.

Guys.... just cause the slim isn't on shelves doesn't mean it is a future model. LOL... for them it is a current model because they are probablly producing them already

Even if we say it cost $900 at launch which is probably too high 70% would be $270.

so they've been bleeding badly for 3 years trying to drop the price desperately and they are still losing money. Now all the sudden they can drop the price $100 and make a $30 profit? Color me high skeptical.

Well if it cost $850 to make at launch as Isupply said, 70% down would be $255. The thing is...they sell PS3 to retail, who then mark it up to make a profit. So if it is sold for $400 to you and I, Walmart bought it for $340...so it would be about $95 in profit per unit. My issue with it is if they drop the price $50 or $100 then you can buy it for $350 or $300, but Walmart buys it for...$255 or $297. In which case all the gains could be wiped out again. But its hard to say, Sony said that the game division profitability was down this quarter anyway. 

Retailers don't make barely anything on consoles, they make the money from games and accessories. I doubt they make more than 5-10 bucks on a console alone.

Uh so there making money, that's good.

Agreed. This could be very well the case. Aren't they cleaning the older model with a lot of different bundles? They most likely stopped producing the regular PS3 and moved to the slim, which could be 70% cheaper to produce than the original model.

John - why so skeptical? a few months ago they were only losing 10% per PS3... MAYBE!... JUST MAYBE!!!! the ps2 isnt as profitable as everyone made it seem. Ever think of that? But of course when I got in arguements and said they dont work for sony and they have no clue how profitable PSP and Ps2 were and it might not all be from Ps3 I got laughed at.