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MohammadBadir said:
Conina said:

2. The "bill of materials" are only a part of the total costs. You have to engineer the product & software, put the components together, box the product, ship the product, advertise the product, pay taxes for the product, let the retailer have his cut,..

So isnt the PS4 supposed to have these very same things?

Yes, between the gross profit and the operating profit is a huge gap.

The PS4 will still be sold with a small loss (or a minimal profit at best)... but it's a great enhancement compared to the PS3 situation at launch.