HappySqurriel, I think that the difference in cost is bigger than $20:

- the PS2 GS chip
- card readers
- 2 USB ports
- 65 nm CPU?
- smaller motherboard

In fact, I had predicted that they'd reduce the size of the PS3, which would be a good move for Japan. Turns out they reduced the motherboard but kept the same casing, maybe for R&D cost reasons?

But as they said, they're not expecting hardware profits in the next fiscal year.

$20 was a 'random' number, but the 65nm process and smaller motherboard will (probably) be used by the 80GB model, so I wouldn't imagine that they would save much money by removing some of the least expensive components and downsizing their hard-drive.

If they wanted people to buy the 80 G exclusively, then they would never have released the 40 G. I think Sony just wants to get their product to as many people as possible at this point, and worry about making money later.

65 nm CPU?

==> this is still 90 nm that are in the PS3 (recent link somewhere in the web)

and I think too that the price difference is bigger than 20$.
If there is no price difference between the 40gb and the 60gb/80gb then I dont understand why they decided to create this new 40gb sku. They could have made a 150$ price drop for the 60gb/80gb sku everywhere in the world.

it is why I believe the 40gb is cheaper, really cheaper I mean.

I said this before -- it's the same bait-and-switch they used at launch with the 20gb/60gb pricing.

Right now, people who never would've thought about buying a $500 PS3 see there's a $400 model and go ok, I'll get it now. Then they get to the store having already mentally committed that money, and see that for only $100 you get 40gb more space and can play your PS2 games, and figure that isn't too much money for that, and get the 80gb model instead.

Now, at launch, they limited supply of the 20gb because they wanted people to get the 60gb instead since they lost more money on it, but they kept the 20gb around for the holidays so they could claim their price was $500 in all their ads and such. The question now is, how many units of the 40gb will they actually release? Will we see it also being discontinued next spring due to "poor sales"?

yea DK i'm pretty sure that's what they're doing too. Sony has already said the 40 gig will be limited supply, they're not even hiding the fact that they want people to pick up the 80 gig. Wouldn't be suprised if the 40 gig goes away in the spring.

You forgot to add "with lots of hype about how they were brining back backwards compatibility because it was such an important feature"

BC isn't that big a deal to most consumers i'd suspect, and all the parents don't know the difference anyways. i agree with KBG29, that we'll start seeing PS2 titles on the PSN anyways.

BTW, haven't we discussed this like 10 times already?

wouldn't downloading ps2 games take up way too much space on the hard drive.

Just curious, how long are the folks who own a PS3 going to ignore the posts of those who are actually waiting to buy a PS3? If you own one already you were willing to jump in much earlier than everyone else which means your priorities have already been established to be much different than someone who is waiting.

Folks like Naznatips and myself aren't here just posting what we want out of a PS3 to piss people off we are actual consumers with legit concerns that are constantly disregarded by the folks who already have a PS3 but are apparently to blind to realize that they have a completely different view of what level of value a PS3 needs to be at to be worthwhile. Thats great for you, you have a PS3 and you're happy with it. But we expect more out of it and just because you don't/didn't doesn't make our concern any less valid.

BC matters to many of the people who have not purchased yet. This idea that it is a non-issue and that people should just buy a PS3 now because its "good enough" is beyond ridiculous. As a PS3 owner you should want people to feel like they are getting a great deal when they purchase, and the criteria for that is their opinion of a great deal not yours. People shouldn't have to justify their purchase in retrospect, they should be happy with the product because it is a good product purchased at a good value and for many people the lack of BC means that even at $300 the PS3 is not a good value. Some of you just scoffed at your computer screens...admit it! But its the truth. Some want to be able to upscale their PS2 games, some want to preserve space around the TV, some don't have a PS2, some just like the convenience, and still others want all of those things.

So enough of this idea that somehow someone who already owns a PS3 has more insight into how a more cautious consumer is thinking than that consumer himself/herself. You don't, you are on the other end of the spectrum.