Ok, so i hear alot of people saying that the PS3 is taking a huge loss on every unit sold blah blah blah....

This may be so but does anyone know how much it costs to make a PS3, because i hear that SONY has reduced this part and that part in size for the CPU, GPU etc.

If anyone knows how much it costs to manufacture the PS3 now and how large the CPU, GPU etc. is, could u please post it because the way some people are talking about the losses of the PS3, they make it out the PS3 is majorly expensive to make.

You almost make it sound like it isn't expensive to make.  I don't have the links but the PS3 is pretty expensive.

It cost the much more then 399$.

When the console first released, the 60gb version was roughly $750-850 to produce, depending on what price they were paying for bulk parts.

Now with the cheaper parts, blu-ray diodes being far cheaper they are almost close to breaking even on the $399 pricepoint. (about $475-525 to produce now)

By far the largest cost of the system at launch was the blu-ray diodes and they have plummeted in price since then.

Yep, this. Also evidenced by drops in BR players price.

The next most expensive component was the Cell I think. Now that Sony is working on a 45nm Cell, due '09, expect them breaking even, and lowering their price Q2 '09.

$75 is not much in the gaming industry.  Very rarely do you have a console that makes money off of the actual sale of the hardware itself(Wii is one of the extraordinary exceptions to this.)  Considering Sony's direct competition is losing at least $100 per console sold (pro model which most closely competes) it is not a bad loss.  With the cash flow from software sales for both producers, they are making a steady profit in the market now and an even larger profit if you ignore r/d costs that are incurred.

The numbers that have shown up here would suggest that the xbox (no matter which model) is doing pretty good compared to the PS3, concerning price-profit-loss actually.

And 75 dollars in itself may not be much but multiply that with the 200,000 sold this week alone, and you need (not sure what the royalty per game is) quite a lot of games sold per console actually, and judging their attach rate, they're not doing that.

The Xbox 360 has been making a profit per console sold of about $26 since 2006.  The profit may have decreased with price cuts, but I assure you, they are not losing as much as you say, if any at all.

The following is the original teardown analysis when the PS3 launched. http://i.cmpnet.com/eetimes/eedesign/2006/chart1_111607.gif (2006)

As you can see the RSX was the most expensive item followed by the Blu-ray and finally by the cell.  I believe that Sony has been able to reduce the costs of manufacturing the PS3 to an acceptable level (still at a loss).  Sony's biggest issue now is the currency markets.  Sony based its 2008 projections on the yen trading at 104 to the dollar.  For every yen advance against the dollar, Sony will lose $40 million in profits.  The yen is currently trading at 97 yen to the dollar.  That is a $280 million hit just in currency exchange.