When the Playstation 3 first hit market it cost Sony about $800 to produce each console but recently Sony told Business Week that the PS3 now costs about $400 to produce which means they are about breaking even when selling their 40GB version and actually making a little bit of profit from their 80GB version.

Even though this news doesn’t scream PS3 price drop it does mean that a price drop could be in the near future, especially if sales continue as they have been, a nice $50-100 price drop would get more customer buying. Not to mention the fact that Blu-Ray is doing so well and the PS3 is basically the only Blu-ray player I would suggest anyone should buy (you get a heck of a lot more for your money than if you purchased a stand-alone player).

Business Week