Yeah sony will cut the price some time next year when they can lower the manufacturing cost

thanks for all the responses :) still waiting for an answer to #2 though

PS3 never cost $800 to manufacture. The initial run of 5mio PS3s liekely had production costs of around $840 as set by Sony. Notice that when we talk about manufacturing costs and production costs in the industry, these are two different things (though production costs obviously include manufacturing costs).

Both XBox360 and PS3 are standard, mass produced industrial gadgets as far as manufacturing processes are concerned so it is relatively easy to guesstimate manufacturing costs (on the 10% level) if one knows what is inside and what manufacturing processes are needed to build these gadgets. If we assume that both gadgets are manufactured within standard industry conditions and procedures, manufacturing costs for an Xbox360 are about $250, and around $350 for a PS3 currently. Future manufacturing costs are very difficult to estimate at these times but will ikely remain the same, as (relatively small) gains in reduced key components (CPU, GPU) will be offset by higher raw material and general manufacturing costs.

No. Is now officiallly crystal Clear. Good Luck with 2 and 3.

When you purchase a game all the money goes to the retailer.   Part of it covers their cost of them purchasing the game.  part of it covers expenses of running a store.  and part of it(hopefully) is profit.

all of it goes to the retailer? even if i don't know the answer i doubt this is the case. you mean to say the developer and the publisher get nothing? that's impossible. so if sony is selling the game, they get nothing and the retailer gets all 59.99? that's impossible.

they get the money that the retailer paid for it.  when you purchase a game, they have already been paid, so money goes to the retailer.  they sell to the retailer, and the retailer sells to you. 

unless you are purchasing from a sony owned store or their online store anyways

No, he means all of your money goes to the retailer.

but the retailer already purchased the game from a supplier who purchased it from the publisher (not sure whether game publishers use seperate suppliers or can supply themselves)

Developer makes game (usually using publishers money)
Publisher sells game to the stores (perhaps through some other company first)
Store sells game to you.

Each of the steps in the "ladder" will take some money out for their trouble and for profit, I believe with games the retailer will generally take almost half the cost you pay, so for a $60 game the store (or company that owns it) will take $25. I have no idea about the rest, but I remember someone mentioning the publisher will get about 20%.

If a game is sold on the PS3 sony gets $10.00 same for MS

eww economics I hate that subject at school.