Just having the Blue Ray drive alone is costing Sony $100 per machine. Sony can't afford to take a loss on their consoles either...not the way Microsoft can. I can easily see the PS3 being $399.99
without a HDD. Not to mention, what kind of online service are they going to have this time around? That's one area Microsoft has a very firm advantage over Sony, and it will be very difficult for Sony to overcome that. Wait another year to be overcharged by Sony for there "don't think of it as a game machine" PS3? Not. Xbox 360 for me.