So if it costs $500 to make, and Sony is breaking even selling it for $499, then retailers are making a $1 loss on the console in Europe.
I pity whoever has to convince them...
Edit: Expecting a component to go down from $300 currently buying off the shelf to $100 buying bulk in ~9 months time when they start manufacturing and stockpiling units for launch? Doesn't $200 seem more appropriate?