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Soleron said:

That's what it costs Sony to have it made for them. This doesn't pay for a single SCE employee to exist, so consider they have thousands of employees in the Playstation division (for marketing, future R&D, testing, returns, firmware, etc) and add that to the cost.

The more Vitas they sell, the more  diluted those fixed costs are over each unit.  If they don't sell enough Vitas it should be obvious they'd make a loss even if each unit was very profitable.

WOW.... desperate