Yes, but you would imagine that the costs haven't dropped from $450 to $250 since late June

On the physical hardware they are apparently not losing money per console any more.

AS a whole Sony's entertainment division is not about just manufacturing PS3s there are other expenses as well. SO it will be a couple more quarters before they get out of red.

Well PS2 is definitely profitable from a hardware side, and now apparently the PS3 makes more profit that the PS2 sells for, and I think the PSP makes money

On a software side, SCE are definitely profitable, most of their games sell in excess of 1m copies

Maybe they are referring to a soon-to-come 45/40nm revision? The price would make sense then.

Or just the slim? We don't have the full conversation, so it could be

It could be either or both anyway!

Here's hoping that the division is profitable on the back of this news for the next quarter so they can begin to 'claw back' some of the losses they have made over the past few years and get back into the black overall!

One thing we will not see next generation is a Sony like they have been this one, they will NOT be stupid enough to release the PS4 at anything close to $600/£425... I personally think a PS4 could be a hell of a lot cheaper as they will likely use the Cell (likely to be several working together) and the only real change will be the Graphics Chip and on-board memory, making the console much, much cheaper to produce!

If this is just a straight up what the on the shelf PS3 costs to produce then that is simply unbelievable. I mean literally unbelievable.

For the slim its possible, but still far less than what I would have guessed (I would have guessed a cost of around $350)

@ rath, I agree, I think the most likely think is that they are not starting from $860, it probably cost more to produce before that launch cost

Or the slim cost 252$ to produce

This is manufacturing cost, So it probably doesnt include the box and packaging and all the cables and the controller that goes with it as well.

But it is good news though