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The following is the original teardown analysis when the PS3 launched. http://i.cmpnet.com/eetimes/eedesign/2006/chart1_111607.gif (2006)

As you can see the RSX was the most expensive item followed by the Blu-ray and finally by the cell.  I believe that Sony has been able to reduce the costs of manufacturing the PS3 to an acceptable level (still at a loss).  Sony's biggest issue now is the currency markets.  Sony based its 2008 projections on the yen trading at 104 to the dollar.  For every yen advance against the dollar, Sony will lose $40 million in profits.  The yen is currently trading at 97 yen to the dollar.  That is a $280 million hit just in currency exchange.



Thanks for the input, Jeff.