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By comparison, the PS3 originally retailed in late 2006 for $599 with a BoM of about $840; a loss of $240 per unit over BoM alone. It took until late 2008 and one major hardware revision to drop the BoM to just over $400.

Anyone feel free to look up at which point SCE was actually selling the PS3 for more than the cost of the BoM alone, but I think it was close to the 4 year mark.

It goes without saying that the PS3 had overhead costs, labor costs, R&D costs, also capitalized and amortized over time. And yes, it also had a marketing budget and literally everything anyone can think of that applies to the PSV as an additional cost over the cost to produce and box the hardware itself.

To put it simply, SCE went from losing $240 over the BoM per PS3 at retail to gaining $90-140 over the BoM per PSV. There's no way to put a negative spin on that.