There cost breakdowns have NEVER been accurate.  Though they've always undershot not overshot how much the PS3 cost.

Keep in mind this comes from the same people with the "declining wii userbase" chart.

If I recall correctly, that's about what Nintendo was losing on the GC at launch (but of course, Nintendo quickly turned the table and start doing big profits from that cute cube later on it's life).

The next PS3 SKU, which likely will start being produced later this year, should be profitable by a tiny margin at current price point.

For the memory, its only 4x XDR chips and ram tends to range around $2-3 per chip. As for the HDD if you consider that NewEgg takes a margin, the distribution costs are higher and the manufacturer takes a higher margin per unit it makes sense.

These are commodity prices, where they could come afoul would be the price/royalty rates for the CPU/GPU given they don't know the respective yields, since the GPU is packaged with Ram its very expensive for them to have a GPU which fails to meet spec as they can only be tested after packaging. Half of the ram is also accounted for with the cost of the RSX.

Lastly where you should be looking is the 'other components' which ammounts to $80. This is a pretty big figure to not explain.

I love how you keep ignoring me kaz.

Err guys you don't need to tell me that Sony doesn't pay retail or that NewEgg takes a margin... I believe I have stated or implied similar things in my posts, I'm not that dumb :P

Prove it?

Last I saw they were WAY off, because Sony lost way more then would of been the case based on their numbers.

Sony is now taking steps to bring down the production cost of the PS3 substantially, especially since Microsoft has been at a breakeven point for some time and the Wii has always been profitable. According to iSuppli, the first version of the PS3 carried an estimated bill of materials of $690.23 (according to a 2007 estimate, which was down from more than $900 estimate in 2006), while the newly revised PS3 is believed to cost Sony $448.73 in materials, manufacturing and box content. This number is still above the console’s $399 retail price, but the new design allows Sony to cut its losses dramatically.

http://www.tgdaily.com/business-and-law-features/40745-land-in-sight-sony-cuts-ps3-production-cost-by-35

Dec. They say Sony is losing about 70 per each ps3

This says it includes manufacturing and box content... hmmm.... who to believe? A website reporting numbers or random forum goers...

http://www.joystiq.com/2009/05/15/report-sony-losing-about-40-on-each-ps3/

May Sony CFO says about 40.... hm... who to believe Sony CFO or kaz... toughie here.

Do I think the Ps3 reduced cost by 30 dollars in 6 months? No. I think isuppli slightly overestimated it. Alot better than you going as far as saying they always underestimate...

Bundled games do count against those numbers also.
And, there's a lot of bundled consoles being sold. So, even less profiting from them.

Btw, the same goes to microsoft. Although not as bad as sony, they're costs must be way higher than what is considered "good".

Other components including the controller, the box, manuals, cables, shipping etc.

You do realize... that makes MY point for me about the two numbers not matching up.

Note all the things I-suppli leaves out, that the Sony CEO's wouldn't leave out.  Such as advertising.

You think that's such an insubstantial thing.

Still they were a lot closer then they were in 07.