PS3 is sold for $399, but costs $494 to make

Sony PS3 might be a plain loss the first year for Sony, no matter how well the console sells. At least according to a Japanese paper, Toyo Keizai, they have analyzed Sony’s situation and concluded that the PS will cost $494 for Sony to manufacture. Since they predict Sony will launch the console at $399 it looks like quite a big loss to. These are no real news though as sellling the hardware to prices below manufacturingcosts is a common thing, but the question is what Microsoft will do when Sony launches its console … perhaps cut the price of the Xbox 360?

Source: Gamespot