Quote Originally Posted by Mr. Smith 01
what I'm saying is, if all the resources for manufacturing the 20GB unit were allocated to making the 60GB version or vice versa, that would almost certainly bring the costs
down becuz there would be more resources to spread around. that's a logical assertion. . .
That's flawed logic. If they only made the 60GB version, not as many people are willing to foot the big bill, so they will not sell as many. Less sales drive costs up, not down.

By having this 20GB version, Sony is actually able to sell more consoles and lower costs on the components which are in both versions.