You know this is insane, right?

Sensors:

All of those sensors are in the PSMove which is 50$ at retail. That's all of the sensors of the PSMove and everything else that makes up the controller...

Processors: 

It's using a chipset that's inline with the iPhone 4 which also has 512MB of ram which I might add. huge for a portable. The iPhone 4 in it's entirety is less than 180 to manufacture...

I don't know about the rest of the stuff.

cost of sales can include other things too

http://www.merinews.com/article/apple-iphone-4-manufacturing-cost-187-reports-isuupli/15825378.shtml

almost all smartphones are around the same price

i know they seem very costly and premium but they aren't

I'm not sure why people only seem to focus on manufacturing costs (which btw are dependend on how many units are produced - the iPhone4 for the tech it uses probably has the lowest possible per unit production costs, because of the ridiculous amounts of units that are produced)

there is sooo much more to put into the equation:

R&D costs, markteting costs, shipment costs, licensing costs, (for companies with less liquidity than Apple) loans/interests  - and then there are the retailers who also want to make money by selling the stuff

Apple is selling with a huge profit, but they still need way more than 180bucks per unit to get it into the stores and to get the customers into the store

I'm not sure why people only seem to focus on manufacturing costs (which btw are dependend on how many units are produced - the iPhone4 for the tech it uses probably has the lowest possible per unit production costs, because of the ridiculous amounts of units that are produced)

there is sooo much more to put into the equation:

R&D costs, markteting costs, shipment costs, licensing costs, (for companies with less liquidity than Apple) loans/interests  - and then there are the retailers who also want to make money by selling the stuff

Apple is selling with a huge profit, but they still need way more than 180bucks per unit to get it into the stores and to get the customers into the store

I understand that Apple is spending more than 180 to sell an iPhone but I'm talking solely about making an iPhone VS an NPG. 

If NGP was 500 to manufacture like SONY stated, then considering everything else you'd have to throw in one can only conclude that SONY is suicidal. I'm just working off the only estimates that we have an the fact that SONY stated this thing would be considered "affordable" and the spoke against the 599$ price tag of the PS3. 500$ =/= seem "affordable to me in any light when it comes to a game system and I payed that much for my PS3 years back.

Don't forget there is another line in that report quoting the operating expenses, which includes Research and development, and selling, general and administrative costs. The gross margin is what it is, gross margin. You may be referring to the Operating Income, which includes other costs.

Apple numbers don't seem to have much in common with iSuupli numbers, and the only completely true information is what apple provides in their reports, not what iSuupli estimates.

Okay, so we don't really have any idea what the price will be for the NGP, but lets say it's expensive. Do you think Sony would do some sort of price subsidation ala the iphone/cell phones? ($600-700 iphone for 200-300 with a 2 yr plan)

This would obviously be for the 3G version only.

Hypothetical situation:

2 models, base is 300, 3G is 400.

Since it's not like a cellphone they obviously can't have a contract signed and then buy the product.. so you think they'd offer a rebate?

$100 rebate with 2 yr 3G contract, so both models are 300.

Yeah i know it's a long shot, but just curious as to if they would do this if the NGP is expensive.

(not sure if anyone brought this up anywhere)