Its expected that during the month of January that older generation SDRAM modules will rise in price, however the newer DDR-SDRAM modules will fall, according to the DRAMeXchange Web site.

"Contract prices for 256-megabit DDR SDRAMs are expected to be around $6-to-$6.50 in the first half of this month, according to the Web site. In comparison, contract prices for 256-Mbit DDR SDRAMs ranged from $6.50-to-$7.00 in the second half of December 2002..... Contract prices for older SDRAMs could go to above $5.00 and $3.00 for 256- and 128-Mbit parts, respectively, for the first half of this month, the Web site said. In comparison, contract prices for 256-Mbit parts were $4.25-to-$2.85 in the second half of December 2002, while 128-Mbit chips ranged from $1.75-to-$2.40, it added."

More here (http://www.siliconstrategies.com/story/OEG20030103S0083).

price is driven by demand. sometimes it is manipulated by those big companies and industries.

I don't know how much of this will be passed on to consumers, but that looks awfully cheap!