SlorgNet on 09 April 2008
Yes, Sony is breaking even on the hardware. Partly it's because they cost-reduced the heck out of the BluRay diode - a $125 item which is now under $20 - and partly because all other components drop 30% a year (this is a rough rule of thumb in the electronics biz). Whatever minor loss they're making on the $399 model are balanced by profits on the $499 model.
This is just the beginning for the cost-reduction slope. Sony will be able to slash the price to $299/299EUR in November 2008, and $199/199EUR by November 2009, and still make money.
