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TheSource said:

Well if it cost $850 to make at launch as Isupply said, 70% down would be $255. The thing is...they sell PS3 to retail, who then mark it up to make a profit. So if it is sold for $400 to you and I, Walmart bought it for $340...so it would be about $95 in profit per unit. My issue with it is if they drop the price $50 or $100 then you can buy it for $350 or $300, but Walmart buys it for...$255 or $297. In which case all the gains could be wiped out again. But its hard to say, Sony said that the game division profitability was down this quarter anyway. 

I bought a metal gear bundle in wisconsin at a half off mark up sale and they took $2.50 cents off so they make $5 profit on the system i bealive that because when my uncle worked at game stop back in the ps2 hay day he said they bought the system at a dollar more then they sold it for making money on perfirals and games.