statements made during a Sony international investor conference call are to be believed, the company has managed to cut PS3 manufacturing costs by "about 70%, roughly speaking." Sony Corp CEO Nobuyuki Oneda stated that this was "on schedule." Concrete numbers haven't been revealed, but based on various reports since the PS3's inception, estimates are that the console now costs around $240 (£146) per unit -- way down from the original cost of $800 (£485).
The upshot of all this is that at the current price Sony is guaranteed to be profiting from each machine sold -- and about time too! -- but there's also enough leeway for the company to announce that much-requested $100 price cut and still be profitable. Whether this will happen or not depends on how much Sony values consumer satisfaction and increased userbase over recouping some of those hefty losses the PS3 suffered in the early years.