It is entirely possible!  I have never understood why everyone thought this would cost anymore.  

$50 CPU

$150 GPU

$50 RAM

$50 HDD

$100 Everything else.

Plus Sony is very good at distribution.  It's simple people!

Exactly.

I thought Sony said it was going to sell at a small loss? Maybe not...but a profit does seem unlikely for me. If the Wii U can't make one, I doubt the PS4 can.

pachter is full of shit like always. PS4 will sell at a small lost but not a ps3 situation again

I find it to be a good default setting when it comes to any corporation, even moreso when it's a multinational. That way you're not surprised when they decide to shit on you. Sony has made many attempts to take a dump on consumers, they will again at some time in the future. Right now, the know they need the short attention span consumer to see Sony as their best friend. When it's profitable to be dismissive of conumer sentiment their attitude will change, kinda like Microsoft's attitude to the consumer with Xbone at the moment.

Omgosh, the PS4 will now bleed money because Pachter jinxed it. He is an evil analyst I tell ya~

I expect it to break even at launch, no losses this time

Yeah but you don't know what the price they are talking about here. When they made that statement the pricepoint they were planning might have been $349, in which case they would be taking a small loss.

I don't think Sony expected MS to release at $499. And i think Sony planned on releasing at lower. Having a look at what actually is inside the PS4 the pricepoints are believable. Theres nothing truly amazingly powerfull in either the PS4 or Xbone.  2 year old mid ranged GPU's in a cost effective APU setup. In fact by the time they release the tech will be 3 years old. And they cpu cores are manufactured from the ground up to be cheap.

People don't seem to get that.

Edit: Theres also the chance that Sony were planning on releasing the PS4 with the eye bundled. Which seemed like the case at the launch event. It looks like they back peddled from that decision. That would have also been a major factor when considering the price.

At the end of the day this is all speculation. But as someone who follows tech related stuff and understands more or less the value of PC parts, saying that the PS4 is actually breaking even or making a small profit is believable.

doesn't this also depends on where the console is sold?
€399 = 50.226,7 Yen
$399 = 37.641,6 Yen
£349 = 51.713,1 Yen
So the profit will depend on where the console is sold.

Nope, they are probably breaking even or making a loss.
I think I read somewhere that the Xbox One will be profitable from the start.