What's so impressive about Sony's console? According to iSuppli, consumers are getting 'supercomputer performance at PC pricing.' All of this performance comes at a great cost to Sony, however. iSuppli's analysis indicates that the Blu-ray drive, Cell processor and other components yield a total production cost of $805.85 for the 20 GB model and $840.35 for the 60GB model.
And that doesn't even factor in added costs for things like the controller, cables and packaging. The end result is that Sony is losing over $300 per 20 GB console sold and more than $240 per 60 GB console sold. As iSuppli points out, 'With Sony taking a smaller loss on the higher-end model, it's not a surprise the company is steering customers to the 60Gbyte version.'
I've heard through the grapevine that Microsoft is already making $75.00 per Xbox360 console after a couple of cost reduction efforts. Microsoft can lower the price anytime they want to kick Sony in the head.