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NJ5 said:

No offense, but you're a bit late to the party. The discussion moved on quite a bit since that post...

In the end some of these items look too expensive (for example the BD drive), while others look too cheap in comparison. I think iSuppli is full of it, and I don't know if the real cost is above or below what they claim.

The iSupply breakdown is, however, much more reasonable than the first attempt which was plainly ridiculous.

The optical drive is way "overestimated", it probably is around $28 to manufacture. There are various royalties associated with it so I'd guess it costs around $35 to slapp a drive into a PS3. The memory chips are correctly estimated at $10, these are just 64Mbyte chips that OEMs can buy around $1-$2 a piece depending on a variety of conditions. So manufacturing costs could be around $300 at the moment (including 1 controler in the box).

That obviously does not make the PS3  profitable based on the hardware alone, in any territory, including Europe. Taxes and store margins add anywhere from 28% to 42% to the product in Europe and margins in Japan are probably even higher than those in Europe.