ocnkng on 18 August 2009
I am thinking that the cost of production of the PS3 actually went down to about the $250 - 280 range or even lower sometime back.
What they did was to keep the cost at 399 and make as much money as they could with awesome exclusives like Killzone 2 and Infamous.
Then when the time was right they bring down the cost again. So now they make very little or no profit from the consoles but thats not the goal, the aim is to increase install base and then make money in the long run.
You could think of this as a whole new launch strategy for them.
It is better to die on one's feet
then live on one's knees
