"There's a heck of a lot more under the hood and it costs us more money to make it," Tretton told Game Informer. Despite this, Tretton doesn't seem to think the system's price will hurt its position in the marketplace. "I think the consumers that get their hands on a PlayStation 3 clearly see the value and not only want to buy one for $599, in some instances they're willing to pay ridiculous prices to buy one on eBay," Tretton said.
Either sony's way out of touch or they're deliberately misleading people. The ebay craze for PS3 died down fast and a lot of storebought units are currently returns from people who couldn't sell them on ebay. =/