Quote Originally Posted by Soulburner View Post
The PS3 initially cost around $830 to produce the 60GB version, and $700 something for the 20GB. They were selling every single one of them for a huge loss. Only this year they have announced that production costs have been nearly halved, coming in around $400 now. A lot of this had to do with removing the PS2/PS1 backwards compatibility, and die shrinks and retooling of the chips.
Not to mention that yields of the cell were less than stellar at launch time and are now very robust.