It definitely costs more than 140$ when you factor labor, research, electricity, etc... But seriously this is not how the market runs. There is no "fixed price" for the goods in sale. Saying that even if they sell badly they would still profit is not true at all. It doesn't work that way.
@Tridrakios I disagree. They will end up producing a lot of devices, so if they can't be sold then that's gonna cost them. Not to mention, who will be willing to make games for PSV if the number of hardware devices is low? If they don't sell enough, then a price cut is needed IMO (I'm not saying the PSV will flop, just that it's Japanese numbers aren't encouraging and need to be fixed. Saying that it's profiting so they don't need to drop the price is false logic as there is also concern for long term profitability which is much more important than short term, if it really is profiting at all).
And finally don't believe everything you read. I'm not claiming the article is false, but I firmly believe that the person who wrote it doesn't really fully understand what he/she's talkin about.