Not as bad as I feared, and costs will probably shrink some over the next 8 months. I bet that GDDR5 cost will fall, especially, because of the size of their order.

I foresee a $479 price-point.

It is.

GDDR5 has come down loads over the past few years but it's still very expensive and is likely to stay that way for years to come until faster mainstream RAM becomes available. 8GB of it is shed loads and shows a damn serious commitment to the PS4 by Sony have to admit, well done them for that, but there's no understating the cost of it.

I believe it's actually a conservative estimate, 12 months isn't going to make a massive difference to price, as the 12 months before this didn't either.

In all seriousness, RAM has been rock bottom for a couple of years now and could even go up in price by then, it does - and has, happened.

Yeah like on GT they mentioned that they could buy an pc with those specs for 600$ two years ago.

Exactly... I think Sony will try to sell this machine at $400 to $500 at launch... I can see even a $350 machine with some 1-year online plan.

Surprised at the supposed ram cost.

28nm process doesn't mean it can't cost more than $50, process size doesn't have anything to do with resail price of said hardware. Nonsense.

AMD has been specializing in relatively low powered CPUs with lots of cores and APUs for a while now, they can easily get the price down to $90 for end price Sony pays.

The blu-ray drive price is way out though, that's going to be around $10-$15 max cost.

It's some good ballpark stuff with, as has been said, some stuff missing. When you factor in Sony selling at a loss, but retail stores marking it up, it's going to be around $499, give or take a bit. More acceptable than $599 but not close to the $299 "mass market acceptance" price. But that's OK. It will start slow and gradually come down in price and increase market share like the PS3.

In my opinion they should have priced it lower and spec'd it lower and tried to get the mass-market sooner, but I don't think the machine will "fail" at this price. It just makes it harder to become the market leader.

GDDR5 costs a lot of money, it's the fastest RAM available on a consumer level.

Really impressed with them using it and 8GB too...mental stuff!

I know... I just wanted to say I don't thing any GPU in 20nm in AMD catalogue (only the chip) cost more than $50... of couse the full video card costs a lot more.

About the Jaguar core... it is to be cheaper because it will be used in tablets and pads... so both CPU + GPU manufactured together could cost below $100... $90 is not a bada prediction.

Hmm, total costs with assembly is probably between 400-500 which is nice, Sony could break even at launch depending on the price, but I reckon they'll take a very small loss. (PS2 loss was more than $100 at launch, PS3 was around $300)