Given how the prohibitive cost of a PS3 has not only been cutting into Sony's profits, but also making it more difficult for people to afford, a reduction in how much the units cost to make would be a boon to everyone. At least, in the long run. For now, it seems that in the near future the cost for producing a PS3 may drop by as much as $100, a fairly significant cut. Currently, the estimated cost for producing a single PS3 is $840, well above the retail selling price. Increased volume and better production of Blu-ray laser diodes is mostly responsible for the potential cut:
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.
Reductions in production cost have been cited before, though Sony has not stated that any of these cuts will result in a lower retail price. That is a shame, considering that it still holds the title of most expensive console and is having a tough time competing with the 360, the Wii and interestingly enough the PS2.