iPhone ASP is 625 US$. With gross margins of a 50%, really high in this industry, you get a BOM of ~300 US$. Then, you have to invest in marketing, I plus D, transport/distribution costs, retail margin, etc.

NGP hardware seems much costlier than iPhone. Do people really think Sony will sell it for 350 US$, when you don't have a carrier that subsidizes it? It will be PS3 2.0 in a financial sense if they do so.

apparently Gamestop are taking preorders for $50 deposit with a 299 price tag :)

Something that everyone seems to have overlooked (including myself until a few moments ago) is that the second SKU is possibly a very bad omen for those who want the PSP2 to be really affordable. While I might be overlooking a minor console release, from my knowledge there have only been two systems every released with multiple SKUs; and the reason for the low cost SKUs seemed to be to limit the damage from releasing unprecedentedly expensive systems.

The two systems I am referring to are obviously the Xbox 360 and the PS3. While I think everyone is fully aware of the fallout from the PS3’s $600 price tag, the Xbox 360’s $400 price initially had it being criticized for being remarkably expensive. While I’m sure some people would disagree with me, I have suspected since it stopped production that the $500 PS3’s life was so short because Sony was losing far more money on that version and it (only) really existed because Sony wanted to market that the PS3 was only $100 more than the Xbox 360.

Now, I could be wrong but I doubt Sony would be releasing a low end system if they could release their fully featured PSP for $50 or $100 more than the 3DS; so I would expect that the 3G-PSP2 will cost $400 to $450, with the WiFi-PSP2 being at $300 to $350.