Eddie_Raja said:
You do understand that Sony is a Hardware company with massive economy of scale... Right?
That more than makes up for that extra $50. |
Cut all of those prices in half, and you'll likely have something close to the actual component prices that they're paying. Then, add in a bunch of R&D, marketing, and distribution expenses, then consider that they have to wholesale the product far, far below the retail price, and you'll start to get a picture of how console pricing works.