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Crono141 said:

I guess to get on the same page I need to ask this question: What example of "next gen" graphics do you expect PS4 to achieve?  I've heard other people throw around Starwars 1313 as an example.  Is this approximately the level you expect?

I expect the equivelent of BF3 on Ultra at 1080p/30fps at launch. This can be probably done at $399 roughly breaking even let alone taking a loss unless my estimates are wildly off: http://gamrconnect.vgchartz.com/post.php?id=4620186 

I say 60fps in that post but I think 30fps is more realistic after taking another look. Also, possibly flash storage instead of HDDs.