Sony has managed to reduce the manufacturing cost of the PS3 by half since its release date in November. It started as 800 dollars meaning a 200 dollars lost for Sony for each system sold. Which seems alot to you and me, but with each person buy several games and maybe a extra controller, The price starts adding up. Now they are currently selling at little or no cash lost. They did this by reducing chip size and improving general production efficiency.
Why do you care? Well besides being a interesting tid-bit, you shouldn't. Nothing has been said but maybe this will mean a price drop in the future.
"Don't expect it to come soon though. Sony are still riding a bit of a wave with regards to PS3 sales and with a number of high profile games coming out in the next few months, that can only improve.
(from http://www.ps3fanboy.com/2008/01/11/ps3-production-costs-cut-by-half/ (original source of story))
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