Last time I checked iSuppli was using retail prices for the components I could find also at shops, in the HDD case they were even exceeding it by a very high sum, so they not only include in the cost shipping and retailer margin, but their estimate is a worse case one, as packaging and shipping a PS3 costs a lot less than doing it separately for its components, the difference should cover assembling cost too and exceed it whenever Sony manages to get supplies at better than usual conditions. And the best thing for Sony is that they most probably buy in Dollars whatever component isn't produced in Japan and they then sell in Euros in their strongest market at a price exceeding the US one by a not insignificant amount.

I highly doubt that they are using retail prices...that would make absolutely no sense.  The breakdown of the figures at their website (which I'm not sure why all of these linked articles didn't included) is spretty detailed on how they came up to the production cost.  What alot of people are overlooking is that this cost figure is only one compenent of looking at profit margins.

I highly doubt it too, but if they say that selling at $299 Sony loses ~$30 AND that PS3 cost is ~$330, that $330 must include all the costs related to bringing a unit to retailer's shelf, but not, I agree, costs that aren't manufacturing and shipping per unit ones, like initial investments, at least part of marketing, etc, huge costs that each manufacturers have to profit on sales (in consoles case also from 1st party games profit and 3rd party royalties) to repay. BTW you could calculate incidence of initial investments on a single unit sold only once production ceases, so the most sensible thing is to keep it separated and see if and when a break-even including them too is reached.

Well...I thing getting your retail cost under your production cost is a signifigant milestone, which is the importance of the numbers.