Year 2001 has been a really bad year for memory manufacturers, prices have been falling for many months now due oversupply. Same also goes for flash memory prices -- and what is bad for manufacturers is normally good for consumers.
Sony recently cut their Memory Stick prices for second time this year and other flash memory manufacturers have followed. And this has resulted higher than expected portable MP3 player sales according to News.com. In last year, flash memory used to cost appx. $2 / 1MB and now the price is around $0.40 / 1MB and its expected to fall even further.