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NJ5 said:
drkohler said:

Note that the 40G Model is about production batch number 4 or 5. I estimate the production costs of a 40G model to around $380 (-10%/+5%, depending on certain assumptions).

I have the feeling that the upcoming financial report from Sony might prove you wrong. In their last financial conference, they said they were expecting to break even on hardware "later rather than sooner", and that it was not certain it would happen in this fiscal year (ending March 2008). We're many months away from that.

Of course this year's financial report will be red all over in the computer entertainment department. Sony is _still_ selling some 2nd and most of 3rd batch PS3s (even 1st generation 20G units are still around) which have a book  production value around $840 and $620 (or were inventorised at $840 in last year's report) and are now firesaled at $499. Actually the red would be even redder than last year's report if it were not for the sale of the chip factories which will add $800 mio to the report sheets.