The production cost of the PS3 could be cut by $100US. nVIDIA and Intel are getting pretty close. $299US HD DVD players are unlikely this year.

The sources explained that global supply of HD DVD and Blu-ray Disc (BD) pick-up heads (PUHs) is still tight because yield rates on blue-laser laser diodes are quite low and the world's major suppliers of such PUHs, including Sony and Matsushita (Panasonic), have assigned their production capacities for own use first. Since PUHs and chipsets together account for 60-70% of the production costs of HD DVD and BD players, the shortage of PUHs renders it almost impossible to minimize the production costs to below US$299 this year, the sources noted.