@evil -
So if the $126 figures from 2005 hold true, then the figures from 2006 about the PS3 must still hold true?
Technology evolves and things become cheaper to manufacture over time. It's common sense that things become cheaper to produce over time.
I'd also like to add this in from your article:
"Microsoft has blamed a 20% drop in revenues for the company's Entertainment and Devices division on a slow-down in Xbox 360 sales"
This means: Because there has been a slow down in 360 sales, the revenues are dropping.
Which means: If we sold more 360s then our revenues would be up.
Which means: If we sell more then we won't lose as much.
Which means: They can't lose $126 on each console because if they did then they wouldn't be worrying about sliding 360 sales if they are going to lose the same amount of money, even though they are blaming the revenue drops on the 360. Which contradicts itself.