In the post-keynote Q&A, Kutaragi was quizzed....
When asked about the expensive nature of the PS3, Kutaragi somewhat bizarrely claimed that in the U.S., the $499 pricing had retailers and manufacturers happy at "such a great function for that price", trying to paint a picture where Europe was similarly happy, and it was only Japan (where the lower-spec model is 59,800 yen, and the higher-spec price up to retailers) that price came up as an issue.
He commented: "We set the price in other currencies and converted back to Japan", but there has been a change of heart, and he directly stated that the lower-price model will now be below 50,000 yen in Japan when it launches - presumably 49,980 yen, an effective 10,000 yen price cut for the machine.