Never understood selling a product at a loss to recoup through software or accessories. I don't believe i've ever seen that as a successful viable strategy.

The price estimates for parts alone came to about $400, not including, shipping, ads, and making the console. It will not be cheap..... It won't be $599 either.

Not really.  You can sell poorly and still make profit.  The Gamecube was in last place but Nintendo still profited that generation.

Interesting, so $499 seems like a likely price, perhaps $449 for a "Basic" standalone bundle.

E3 should be good.

So you think Sony will not sell PS4 at  loss?

If they aren't planning a loss then Microsoft has an advantage as they are capable of winning the price war with subsidization.  The PS4 is looking more and more like the gamecube to me.

LOL! Ps4 will sell a minimum of 3x more than the gamecube.  It's not that it looks like it to you. Its that you wish it was. Huge difference

From the quote they've said they won't sell it at much of a loss so they will still sell it at a loss, probably similar to Nintendo where they only need to sell atleast one game to turn a profit. 

What I meant though was by the chance that it did sell poorly, it doesn't necessarily mean that they would have lost money.

I can see Kaz at E3 now:

"999 US dollars!"

I'd recommend looking up look up how Rockefeller became so incredibly rich...