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Rath said:
If this is just a straight up what the on the shelf PS3 costs to produce then that is simply unbelievable. I mean literally unbelievable.

For the slim its possible, but still far less than what I would have guessed (I would have guessed a cost of around $350)

What makes in unbelievable. SONY was probably working hard to reduce manufacturing costs. They planned to eventually earn a profit on every console sold.  This is probably later then they planned anyway.