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Pk9394 said:

http://gamepro.com/news.cfm?article_id=111849

here is an interesting article estimating the price of both system feel free to discuss

I personally think the 840 break down price of PS3 is full of it.



 Not really. These numbers are more or less the prediction of about 6 months before. That this article is no longer up to date can be seen in Microsofts statement and the mentioning of a 45nm Cell, which is no longer planned.

These nimbers were probably more or less correct, but this figure shows also why Sony always said that they don't plan a price cut in the near future.  While they were able to lower their production costs even the simple production itself generates a huge deficit and ypou have to add logistic and advertisment.

That's the main reason why I would describe the PS-3 situation uncomfortable. They had to lower their prices to a bare minimum but they are in a situation where they are doomed to win. When Microsaoft finally gets its 65nm processor they can think with some confidence about lowering their price. Sony would have to follow but with a black eye. They are more or less in the same situation the Xbox was in. While they sold games they had severe losses, while Sony finally minimised production costs with the slim line PS-2. Now Microsaoft has all rights necessary to produce a slim line console while Sony has to buy most of its parts.

If there would be only the PS-3 and the Xbox 360 Microsoft would probably have started a price war already, but with the Wii this would be a bad idea. So they switched to a more conservative approach. First lower the costs and then the prices, so they can pay their bills with a second place. For this role they have a much better cost structure than the PS-3. I would say the Xbox Elite is a clear sign for this approach. While it does not look attractive for consumers each console earns money. That's something the PS-3 can't offer at this time.