Hmm, good question. Sony has kept the $129 price point for an amazingly long time, while the hardware gets cheaper and cheaper (though not 30% per year for leading edge hardware, it's more like 10-15% a year for mature tech). My guess -- and this is only a guess, and probably wildly wrong -- is that they could be making as much as $40 on the hardware alone, though advertising, shipping and servicing costs mean actual profit is $20 on each unit.







