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numberwang said:

Retail price is typically twice the production cost. Sony has to take a big L in the beginning here.

Compare to the iPhone XS with comparable component costs.

As part of its teardown, TechInsights estimated the cost for each component. Its total is $443, as compared to the $1,249 price tag for the product. So just 35 percent of the purchase price goes to pay for the actual hardware.

https://www.cultofmac.com/579177/iphone-xs-max-production-cost-bill-materials-bom/

Smartphones are a rip off. Consoles are a damned good deal. 

Any company making over $1.15 for each dollar they spend, is price gouging customers.