Sony were already making losses before the price drop and after the price drop they have suffered even higher losses. But then who cares? As long as those that have been waiting for the PS3 to become more affordable have gone and bought one or can now go get one.

I think the PS3 was priced very well originally considering whats in the box, but now its an absolute bargain.

Sony now need to secure more exclusives because it will be like the Wii - everyone wants one but what is there to play?

True. All Sony need now are more exclusive titles that are actually worth playing.

Actually Sonys losses have not increased that much, the prices for electronics is constantly dropping with time and the new 40 gig PS3 uses the smaller, cheaper and more efficient 65nm processor, a new streamlined 'motherboard' if you will without the PS2 chipset and no doubt smaller, cheaper components in the Blu-Ray drive.

This happened with all previous Playstations, Constant changes with the hardware to make it more efficient and cost effective.

From what I read only SOME of the 40gb PS3's have the 65nm so yeah costs have come down as they will obviously put the newer processor in all the PS3's soon enough.

Am not sure what cheaper parts they could possible put in the blu-ray player but oh well.

But Sony's losses have been high, dont forget they invested $1.7billion in the CELL which they now are selling off to Toshiba and IBM for $860million.

It is still rather unfortunate that the 40gb had to be stipped down from the full PS3 - especially when Sony was quoted saying 'All our PS3 owners are ELITE' in reference to the launch of the 360 Elite.

But I guess 60gb owners are Elite so what of 40gb owners?

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