spoke with Nikko Citigroup analyst Kota Ezawa who believes changes in the PlayStation 3 have dropped production costs from $800 to about $400 per unit. Although Sony may have cut production costs dramatically it's not all sunshine and lollipops, Ezawa expects the Sony games division to lose about $1.4 billion this fiscal year, which is still better than the $2.1 billion loss last year and he doesn't expect prosperity in the division until '09.
With production costs continuing to drop and signs that Sony may see Blu-ray succeed
, consumers who held out on the PS3
may see benefits this year. If the cadre of American analysts is correct
, there may be another PS3 price drop this year -- although this time it'll appear more a sign of growth than desperation
[Via PS3 Fanboy