It seems Sony has finally managed to cut the PS3's manufacturing costs to a low enough point that they now stand to make profits on every sale of the console at its current prices. Even better, they may finally have enough leeway to institute a price cut.
According to TotalVideoGames.com, Sony Corp. CEO and executive VP Noboyuki Oneda said during a conference call for overseas investors that "about 70 , roughly speaking" has been shaved off of the console's manufacturing costs. Oneda also stated that the substantial cuts are "on schedule."
Oneda didn't elaborate on exact numbers, but considering that the PS3 is generally believed to have originally cost Sony more than US 800 per unit, a 70 decrease suggests that costs have come down to around US 240 per unit.
You can listen to part of the conference call at the source link below. They start talking about the PS3 at the 1:05:25 mark.