Could the "PS" in PS3 be fore "Price Smart"?

I'm not a fan of Playstation, but I've got to give Sony credit. Lots of people had thought that the PS3 was down for the count in this console war with the lack of games (let alone good ones) and the Donald Trump style price tag. On top of that, even with the high price tag Sony was losing money on selling the consoles because the production cost was higher than the wholesale price. They had to rely entirely on licensing rights to make games on the console for all their money. And yet even more they failed to match up to the awesomeness that is Xbox Live, to which I actually heard a Sony employee say in an interview that they "knew we were ****ed." But Sony hung in there, and now it's been almost a year and a half and the past few months the PS3 has been starting to come around. Some would even argue (not me) that PS3 has passed the Wii in the console war.
So get this, a few days ago Joystiq said that sometime after/around the release of Metal Gear Solid 4, there will be a PS3 bundle for $499. The bundle includes the 80GB console, MGS4, and the new Dual Shock 3 controller that is coming out next month. Let's do the math here:

Current gen gaming console- approx. $350
80GB hard drive- approx. $120
Blu-Ray player- approx. $600
Metal Gear Solid 4- $60
Dual Shock 3 controller- $55
Total value of package- approx. $1185

The value of this bundle is unbelievable. It's $100 more than the current 40 gig PS3, so you're doubling the system memory, then you're adding in the (in my opinion) better controller along with one of the most anticipated PS3 games of 2008. This price is actually $100 less than the launch price of the PS3, that's what's really astonishing about it. I would love to know how much Sony is going to be losing per console (I'll be sure to post if I find out.) Sony is either extremely desperate to sell their consoles or has found a cheaper way to produce the consoles. I have a feeling it's both. This might spur developers to make more games for the console. Before, not enough people had the console for them to port their games to the system (let alone port them decently.) If I were a publisher I would be extremely hesitant to do a PS3 exclusive. But now with this price drop, the PS3 is going to get into more homes and get PS3 games selling. And once a lot more PS3 games get selling, a lot more PS3 games will start being made. I think this is a smart move for Sony. They've managed to fight their way back to keep themselves in the war and now this is really going to make them a real threat once again.