It does not matter the units cost to make, sony will sell them at 399-499 and take a loss. they will make the money back on software, late life span units that are cheaper to make and course the kickback per disk if they can get Blu-Ray established as the next movie standard as they did with dvds and the ps2. This is standard operating procedure with game hardware manufacturers.

Next comment: "the ps2 cost 700 when it first came out [...]"
Previous comment: "I agree with Tomas all the way on what h [...]"