In a note to investors today, Goldman Sachs analyst Yuji Fujimori predicted that Sony will drop the price of the PS3 by $100 dollars this October. So how will the price cut be justified? Volume!
Kidding, Fujimori cites the reduction of good ole fashion parts; the fewer there are, the cheaper it is to manufacture.
For example, PSX was originally manufactured with 700 components, later reduced to 200. The PS2: 2,000 parts reduced to 600. A smaller cell processor
should help reduce costs as well. So for those still sitting on the fence, would a $100 PS3 price drop sway you into buying; or would it take more than that?