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Eddie_Raja said:
exclusive_console said:

OS + a controller and all that in a relatively compact box. That takes lot of money to manufacture than you think

To me lot of people expecting a 400$ console are going to disappointed. It is significantly more powerful than Xbone S which is 300$ and I do not think this is dropping to 200$. May be on sale for 250$ for limited time at best

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.