http://www.gametrailers.com/videos/1zpcu1/e3-2013-e3-2013--pachter-interview--stream-

I watched the interview yesterday and can't be bothered going through it again for the exact numbers. But he says their [virtual?] tear down puts manufacturing at about $325, add other costs to get the units to stores, and the marketing expenses I gues that might put the cost of PS4 up by about $25. Pachter thinks about $375 wholesale, with the retailer getting a $24 margin.

I know Pachter's predictions are often terrible, but I think his technical contacts making these estimates must be reasonably good at what they do. So I'm picking that this is a reasonable estimate. At worst his margin for errorprobably puts PS4 at break even for Sony. Which is still a really good starting point.

I haven't seen any teardown estimates for Xbone, but I'm picking Xbone must be making a small profit too, unless Kinect is a helluva expensive piece of kit.

Anyway, this bodes very well for Sony, and it means Sony will be in a position to drop the price any time after the first year on market and remain profitable per unit. Either to stay within a certain price diferential with Wii U, or to remain cheaper than Xbone, or to just drop the price on a pre-determined pricing schedule.

Sony is a greedy, evil corporation, we must not lose sight of that fact. But they are doing a damned good job of pretending to be our friend.

Sorry I am still an embed noob.

is that possible?

Considering the price of the XBox One, it seems highly unlikely Sony are making a profit on each unit sold...

"Sony is a greedy, evil corporation, we must not lose sight of that fact. But they are doing a damned good job of pretending to be our friend."

what... the .... fuck? why the hell is that even in your post?

who said the xbox one isnt makig a profit right from the start? 

I'm not inclined to believe Pachter... all the stuff inside+manufacturing+distribution, just $375? That's hard to believe, to me...

Xbone would for sure be selling at $399 if Kinect wasn't packed in. So I don't think the Xbone price point means as much to PS4 costs as some people might think.

Anyway, Pachter has the word of computer geek tech guys to go on. Does anyone have references to other computer geek tech guys who are putting manufacturing at a much higher cost?

People are saying GDDR5 is expensive, but if Sony did a 3-year fixed price deal for 10s of millions of GDDR5 units then they could be getting that RAM for way below current market price.

Then either MS is going for huge profits for Xbone (considering it is supposedly inferior to PS4), or KinectBone is REALLY expensive and hi tech.

it can be true 375 for the ps4 Sony gets parts in bulk meaning they get them cheaper say blu ray drives
They order a million of them they get for like 12 each same with memory and other parts.
And almost every body will buy ps plus and a game they will come out ahead

dont take this as 100% true, but i got this from the thread that talked about the X1's development problems. from what i understood is that the X1 uses a bigger APU than the PS4 and that basically is more expensive. so even though PS4 is stronger the APU in the X1 is costing more, and in a way balancing out the DDR5 cost memory in the PS4 add to that kinect and the X1 package could be much more expensive to make than the PS4.