I don't think so. I think the cost was a cost of materials only based on a anticipation of the cost in 2013 (i.e. not in 2010 and not now). Additionally, even if the cost of materials is $225 it will still sale at a loss at $300 once you add in all the other associated costs to put out a product. (3DS and Vita both have cost of materials way less than their retail price, but both are selling for a small loss currently)

I think the specs are about right and the price is right depending on Nintendo's Wii U price and PS4. If Wii U, for arguments sake, goes for $250 and PS4 (similarly spec'd) is announced at $350. Then MS has a choice based on these specs. They could try to target a lower price to combat Wii U and sale for a loss at or below $300 while or they could put it around PS4s price and sale for very small loss or very small profit. With their large bank roll they have the most flexibility.

even in 2013 that can't be just cost $225

sell at a loss or profit i don't care anyway,because MS is rich

For XBox Next we know it has Destiny game from Bungie expected and will likely be poised as the system seller. Not much else is known.

For Wii U, the launch software is ZombiU, Nintendo Land, Project P-100, Game Wario, and maybe Pikmin 3. Probably a few more from 3rd parties.

For Sony PS4, it looks like they will still be having major PS3 releases happening in 2013 like The Last of Us, Beyond Two Souls, The Last Guardian. No idea what if anything could be poised as PS4 launch software.

It's looking like both MS and Sony are going with 4GB of RAM. It will be interesting for the WiiU, if the really stuck with 1.5GB they'll only have 37.5% of the RAM of the competition.

Yeah I'm getting more and more worried as details keep becoming more clear. 1/3 of the ram is not good.

^This is what I've been worrying about the whole time!! Nintendo really need to future proof WiiU - they can't expect it to be the new Wii, but with 1/3 of the RAM compared to the competition... it doesn't look good!

If they went with 2GB. I think they'd be fine, but 1.5GB and i have a feeling the multiplatform games would dry up 18 to 24 months after launch.

^I second this! And it's what I've been fearing all along! But as far as I understand, the most likely scenario is that they'll go with 2GB, but reserve 512MB for the OS. Correct? I have no idea how this will hold up against Orbis/Durango though... seems like they'll have 4GB!!

perhaps they relying on that 8gb SD internal storage for buffering? They haven't exactly gone out and said you can install games on it. Also considering all games will be avaialble as digital downloads, 25gb games will not fit anyway. SO I am guess they expect these people to install on external storage.

It might be like you say, I have no idea: I'm no techie. Don't have a clue at all about anything anout this. I'm just reading what other peeps are saying, and my basic knowledge of math allows my to draw the conclusion that 4GB is more than 2GB, and therefore must equal more power...