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Shinobi-san said:

I also don't think that because of the hardware specs mentioned that the console will sell at a loss or be unreasonable priced.

The fact that Sony and AMD have managed to fit a glorified 7870 gpu into an APU design is amazing. And seeing that this is an APU design, this will be power efficient and cheaper than individual component parts.

This is why they went with jaguar cores (they are tiny!). The entire architecture is built with gaming performance in mind, as well as energy efficiency and at the same time keep costs down.

As for the 8GB of GDDR5 ram....I'm hearing all over the place that this is just outright expensive.

But since i don't think Sony will be offering much else with the hardware other than the controller and the dual cameras, there's probably room for that expense.

I'm honestly seeing a $250 BOM on this thing.  APU shouldn't cost more than $150, BD drives have gone down in price, an extra 100 dollars between the BD drive and mobo/casing.  $300 tops.  Sony's in a good position assuming that camera and controller doesn't cost much.