Production Costs of the PS3 Could be cut 100$ US

http://www.n4g.com/industrynews/News-38248.aspx



As blue-laser pick-up heads (PUHs) for use in the PlayStation 3 (PS3) are expected to increase in supply and decrease in price, the production cost of the game console could be reduced by as much as US$100, according to Taiwan-based makers of game consoles and components.

Sony Shiroishi Semiconductor, a wholly owned subsidiary of Sony, on April 23 announced an expansion of its monthly production capacity of blue-violet laser diodes, a key component of HD-DVD and Blu-ray Disc (BD) PUHs, to 1.7 million diodes as well as the beginning of volume production of 240mW (milliwatts) blue-violet laser diodes in November of 2007. This will greatly increase the supply of blue-laser PUHs at lower prices, the sources indicated, noting the reduction of costs could reach US$100.

That's very nice!

Sony is losing too much money on the PS3 right now to afford a price drop so early; however, they could use one shortly before the holiday season, or begin offering a pack-in deal with a game to offer more value to those who buy now.  They need to boost the PS3's sagging installed base before they start not just losing exclusives, but losing games entirely.