This
news item on Gamespot highlights an article in a Japanese magazine where Merrill Lynch Japan Securities predicts Sony will lose $1 billion when the PlayStation 3 is sold. With the Xbox 360 going for $399 (I am not even acknowledging the Core edition anymore.), they predict the price point for the console to be $399 with an estimated cost of producing the unit to be about $494. The first year's loss would equate to $1.18 billion when all is said and done. I don't think Merrill Lynch put into the estimate the cost of the root kit though.