Hello.
(Yes, I'm still alive... complicated)
I say this while holding a new 8gb SD card I just purchased. It's a decent one, so cost a bit.
Prices here get down to NZ $4.50/gb, which is $3 us.
I actually think solid state storage would make sense from a comsumer perspective for the next round of consoles.
I'm sure there is a higher production cost. Cutting edge consoles historically are money losers for their first year(s), usually on the hardware of course. It's another cost to factor in...
There are also cost savings involved. The hardware gets a damn sight simpler - fewer moving parts, fewer parts period. It would also help the physical design (eg heat management).
Not just that but transport - getting the games/consoles to a store is cheaper if they are smaller and lighter.
hypothetical:
If having a flash reader in the console saved $20 on the console hardware+transport (due to space saving, packaging, etc) but added $7* to each disk production *and* saved $3 in transport per disk - then with an expected game/console ratio of 4/1 it's a
money saver of $4 per console.
I'm not saying that is what would happen (I don't know enough about how the costs break down), but I bet it's a lot more complex than just saying X costs more.
The other side is read speed. Yes, on paper a 10mb/sec optical drive beats 8mb/sec flash storage - but that is assuming it's all sequential. Seeks kill optical drives, and are one of the harder parts of console development.
Realistically how fast will bluray be in the next couple of years for a console? 4x, 8x? How would that compare to a flash storage system?.. I don't know, but I imagine it's probably close enough to be workable either way.
*lifetime average?
On a completely unrealated note, my 2.5 year old 360 bit the dust yesterday. If only that GPU heat sink were bigger...