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Do you guys really think it will cost $500 for sony to make 1 PSP2.  No way i dont think so.  This might not be a good comparison but the Ipad only cost $260 to make.  The Samsung Galaxy Tab is even cheaper at $205.  These estimates were made by isuppli.  These are fairly new products on the market.  The components the psp2 will have closely looks like what is in the Ipad2 with the exception of the Oled screen, processor, and gpu.  The Ipad 2 is rumor to have a dual version of the cpu and gpu that will be in the PSP2.  Apple is very good at keeping production cost about the same from previous generation models.  If the only major difference in terms of specs between the Ipad 2 and PSP2 is the Oled screen, processor, and gpu i dont see why Sony couldn't manufacture it between $300-400.    I am almost certain the PSP2 will sell for $300 or lower if possible.