The PS3's production cost was cut by as much as 35%. The console now costs $448.73 to build, closer to the $399 price point, so Sony still loses money, somewhere... hmmm... not here.
The PS3 costs 399eur here in Portugal and, AFAIK, it's also the official price around most of Europe. The cheapest I found around here is 389eur with a game, for the 80GB version. 389eur equates to $548, with today's exchange rate(1eur=$1.41142). At least here, they should be breaking even; even when taking retail margins into account.
In the UK things are different, Amazon UK is listing the cheapest one at £279, with a better deal at £283:
So, £279 equates to $402.6(£1=$1.44249), slightly better than in the US. Not so rosy around there, still not losing much. Could be worse.
Now, since it's established that Sony is mostly braking even around here - or not, if we consider this might be old, high-dollar valued, stock - we might see a price cut for the "Euro zone" to 299eur soon, the same price the $399 Xbox 360 Elite currently sells for. After all, at today's rate, 299 euros = $420. Microsoft has already adjusted prices and, after all, the £279 Amazon asks for one are 285eur today.
Sony seems able to cut prices here in Europe, it just won't. That doesn't seem the better strategy since the PS3 surely need a push: it's well on it's way to be the current generation looser - with or without Blu-Ray. Sony sold 19% less PS3's than the last year.
Come price cuts, come.
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