Along with the #NoDRM announcement, the PS4′s $399 price tag blew the audience away – especially when the weaker Xbox One costs $499.

But Wedbush Morgan analyst Michael Pachter doesn’t believe that Sony is selling the console at a loss, like they did with the PS3. He told GT:

I think they are almost certainly making a profit there. A $399 retail price tag is about $370-375 at wholesale… our add up on the costs of materials is about $325, so I think they make a little bit of money, $25-55. And I think Sony has to make a profit, the corporation is not doing well financially, I don’t think there’d be any tolerance internally to sell anything at a loss.

Does this mean that Sony will finally be able to start making some money? Should Sony sell it even cheaper to hurt the Xbox even more? Let us know in the comments below.