Playstation3 will cost $410 at retail ?

http://www.gameshout.com/news/062005/article1025.htm

PlayStation 3 Initial Costs
With a cost of $494 USD, this could be dangerous for the Sony PS3 since the
Microsoft Xbox 360 is priced at $299 USD.


The initial manufacturing costs for the PlayStation 3 are suspected to be
around $494 USD.

A recent report estimates that the launch costs for the three main
components of the system are the RSX graphics chip, Blu-Ray disc drive, and
the Cell processor. The cost is $101 USD each.

In an attempt to beat Sony's new PS3 system price, Microsoft Xbox 360 could
cut the $299 launch price even lower. Sony PlayStation 3 hardware will
initially retail for $410 USD.

Sony has traditionally taken large losses on its new hardware to gain a
market share advantage, however, it may face a disadvantage if forced into a
price war, as Microsoft and Nintendo are each making more conservative
choices when it comes to hardwa Microsoft is using the currently-existing
DVD spec for its own media, while Nintendo has eschewed support for
high-definition video, in the interest of maintaining its own history of
turning a profit with each console unit sold.

Furthermore, Sony is currently still taking losses on its PlayStation
Portable hardware in a continued, not yet successful attempt to beat the
Nintendo DS and Game Boy Advance in the handheld game marketplace. The
PlayStation 3 is currently expected to result in losses of over $1 billion
in its first year of sales, in addition to the $1.83 billion already
invested in R&D for the Cell chip, co-produced by IBM and Toshiba.

Bring on the discounts.