Rumor: Gamestop conference call mentions 120 GB PS3

It wouldn't be cheaper to make a 10 gig hard drive.

How many of 10 gig HDD's do you think there are making?

Not many if you knew anything about production you would know that mass production makes everything cheaper. So including a 120 - 160, since that is the same hard drives that most laptop manufactures are creating, would cost Sony less. If you read other people comments you would have knew that already.

Take out *of* in the second line

I was exaggerating about the hdd size. And no, I didn't bother reading the other comments because I didn't have the time to do so, so no need to be a prick.

Regardless, I think sony's not really seeing what the consumers want, or maybe they're still trying to squeeze some high prices SKUs out for profit while they can. From the reactions to the $299 rumors, I think they would be better off avoiding the large hdd trickery and just cut the console's cost.
If it had indeed dropped to $299, I would've been the first person in line, and I know several people who were also waiting to see the outcome to the rumor. As it stands now, I'm never going to go for a $399 pricetag. Just too expensive for my budget.

I agree a price drop would be great for Sony which might be what they are trying for with this SKU the small cell and the smaller laser will cost Sony less to produce. This could end up meaning a price drop for the consumers and a cheaper price never confuses a buyer.

I don't think the changes in capacity have anything to so with solving any "problems".

exactly. Sony needs to either pick 2 and stick with them OR leave a lot of different ones on the market ala 360. i think 2 is their best bet but they gotta stop changing them every couple of months. no one wants to pay upwards of $400 to get shafted 2 weeks later by something better.