Some Sony employee slipped a month or so back that with the originally planned price of $600 dollars, they would still lose money for the first few ten thousand consoles.
Now, I imagine what it might have cost IF Sony had went for their bizarre plans for having a Blu-Ray burner, HDD and the Tivo thing in the console. The cost might have been close to $1000 dollars.
I think PS3 is just ridiculous.