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disolitude said:

However your pricing doesn't take in to account the real cost of a GPU, CPU or any chip...its development. Skilled staff, research and development, RTL hardware guys, testing, drivers, SDKs/APIs, marketing, paying license fees

You are again one of the people who doesn't quite understand the difference between manufacturing costs and production costs. What you add are not manufacturing costs, they are adding to the product cost. The cost of the PS4 is made up of manufacturing costs (where Sony cannot tweak the costs) and the stuff you mention (where every manufacturer has its own rules/timeline of recouping those costs). I wouldn't bet on Sony/MS going AMD/GF though for chip manufacturing. They are way,way,way,way,way behind Intel amd way,way behing Samsung and way behind TSMC (with an unknown factor soon playing a role, the new chinese plants).

We've gone through those numbers umpteen times in various threads (basically in cell -cost-threads). However, the approximate price list given here should give you an idea why there is no die-shrink cell for the PS3 around..