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zumnupy10 said:
PS4 hardware is very low end compared to what PS360 were in 2006. So I believe him.

Basically this. Maybe they sell it with small loss that will be offset if the customer buys one first party game. Both of the next gen consoles will be pretty cheap to manufacture as they use off the shelf parts. Xbox one might be even little more expensive manufacture because of larger APU and rumoured low yields.