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bugrimmar said:
so nobody knows the answer to 2 and 3?

I remember seeing the answer to 2 some time ago, but can't recall the specific numbers. Hopefully someone can chime in.

As for 3, the companies don't often reveal the actual production costs, though sometimes they leak out.

We know the Wii has been sold for a profit from day 1, and likely would have been had it retailed for $200. It's cost is likely significantly less than that now.

The 360 costs have been dropping, and reportedly MS was making a profit off each sale, at least before the latest price cut. So I would guess a Core/Arcade system is running MS just under or just over $200 right now.

With the PS3, we know it originally cost over $800 to make, but those costs have been cut considerably, which is why the PS3 can now be sold for $400. My guess is that the PS3 is likely down to $450-500, and could be closer to $400 next year, which would allow Sony to cut price.