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RolStoppable said:

Certainly more than $200 at the moment. Some people look at bill of materials (BoM) estimates and completely forget that assembling, packaging and shipping comes at a cost too, plus the marketing money that is spent on advertising the hardware needs to be made back as well. Just like games need to made back their development, packaging and marketing costs in order to be profitable.

$199 is going to be the lowest the PS4 will go on a permanent basis, because the PS2 days are long over. The PS4 comes with capabilities like storage and wi-fi out of the box, so price points of $149, $129, let alone $99 aren't realistic for home consoles anymore.

Needless to say, today's €199 offer in Europe means that these PS4s will be sold at a notable loss, but that's of course expected to pay off down the line, because the customers are buying games and possibly paying for PS+ for a few years.

Nope.... things like assembly is factored into the bill of materials. For the PS4 at lauch that amount was around $18. Packaging and shiping will not cost more than a combined $10 on a per unit basis and the marketing cost per unit is non existant because of how game consoles work....... those deals are done ona game by game basis as opposed to a hardware basis, its why at the end of every PS4 game ad you see a small 3 second clip that says for the players and a starting at XXX price tag on the screen.

And i can gaurantee you that selling the PS4 at €199 sony won't be taking a loss. These consoles just don't cost as much as you think they do.

I am not pulling these numbers outta my ass..... you can look here for reference. Everything is accounted for, assembly, packaging... everything. The biggest con tech manufacturers pull is making consumers think that they are getting some sort of deal by paying what they are paying for a product. These things cost significantly less than what you may think to make.