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Rainbird said:
I don't see why everyone is saying the PS3 will be profitable when it costs Sony 400$ to build one. 400$ is the price retailers are selling it for, therefor it needs to go even lower than that.
I don't know how much lower it needs to go, and maybe I am just blowing smoke here, but it seems weird that the "sweetspot" would be at 400$ to me.

Actually it was $450.  And after you factor in shipping, warehousing, warranty, online free, etc. plus the discount that retailers get, say $380, they are probably still taking a $90 loss as of right now.  Sure they can probably drop that $90 throughout 09, but if anyone really thinks they will rush right in with another $100 cut and start this all over again is crazy.