According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006. Merrill Lynch Japan estimates that the machine's main components--namely its Cell chip, RSX, and BD-ROM drive--will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine's production cost goes up to 54,000 yen. Full Article
I'm surprised its only $494. Typically, Game Console manufacturers sell their consoles at a loss and make it up on games. Games on DVD cost less than $1 to make, but sell for over $50. (Development costs not here included in either the deck price or the game price). Nate