PS3 may break even in 2009

Market research firm estimates the cost of the console has been reduced by around $250 in just over a year.

GamePro reports that the cost of the components used to produce the second generation of the PS3 has dropped to $448.73, based on October 2008 component prices. Market research firm iSuppli notes that in mid-2007 the cost per first generation PS3 was $690.23.

The 80GB PS3 currently retails at $400 in North America meaning Sony is still making a loss on each console sold, but iSuppli notes "the PS3 may be able to break even in 2009 with further hardware revisions".