Sony breaking even on PS3/making profit 40gb PS3

[HappySqurriel]

rocketpig said:

Sorrow880 said:
The blu-ray diodes cost has already dropped by $100.00 or so. They did cost OVER $100 a piece when the ps3 first came out, not they are around $7.00 a piece. That's HUGE savings from just one part.

Then why are BD players still retailing for the same price as a PS3?

That's a good point ... To put it another way:

Consider HD-DVD players, their primary advantage over Blu-Ray players is that they're less expensive; now Toshiba has a very good reason to sell their players close to cost or at a loss and yet they're still $300 (for the most part). The PS3 has several expensive components (Hard-drive, Cell processor and GPU, Memory, etc.) which are not in Toshiba's HD-DVD player.

Certainly it is possible that Sony is breaking even on the manufacturing costs, but there are lots of reasons not to believe it.