Don't believe everything you hear - PS3 is already putting itself behind the 8-Ball by pushing their launch further back, and they need to be competitive to take back some of the market they have been losing to the X-Box 360.

I would honestly be surprised if it was anything more than $399. But I suspect that it will be between $299 and $399. Most casual gamers won't spend more than that on a console, and Sony is going to want to take complete advantage of the holiday season.

Remember - consoles always represent a loss for a company, at least in the early stages of life. Of course the PS3 is going to cost between $400-$900 per unit to make, but they will eat that because they buy the parts wholesale and they are going to sell a shitload of the damn things.