QUOTE(Exist2Resist @ Dec 28 2006, 11:58 AM)
If the PS3 is sold at a $200 loss then there is no reason the BD Plaers should cost $1k. PS3 hardware vs Player Hardware, this means that the profit margin on the standalone players is enourmous mor than likely 200% + profit. Anyone buying a standalone player is a chump.
PS3 is sold at a loss comparing to the BOM costs, that is just the manufacturing costs, without adding in the resarch amortization, admin and all the bonus paid to the execs. If priced as a normal electronic equipment, PS3 could easily be sold at twice as much.
Say the BOM costs of is about $900, add in retailer's profit, shipping cost, Sony's old operating and admin cost, plus a reasonable profit margin, it's scary to think how much PS3 would cost under normal circumstances.
Thanks Sony for adoption the razor blade model on consoles, I bought it mainly as a Blu Ray movie player and cannot be happier.