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Deleted member 11852
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That's not much, actually. They could sell it for 399 or 449, and take a small loss? 499 or higher is going to give trouble i suspect. Hardcore gamers may want to pay 1000 dollars or more, most casuals don't though.
The BOM price is baseline for losses, it does not include costs for manufacturing, inventory, shipping, global marketing and for any software titles developed which aren't cross-gen loses so make less they they cost because of the limited install base. Nor does it cover the years of R&D cost the it took the develop the console in the first place. You're likely looking at $100-200 loss in real terms. Sony sold 4.2 million PS4 consoles between launch and the end of 2013. If you're only losing $100 a unit, you just lost almost half a billion dollars. As the los-per-unit rises, that loss rises.
It's easy to get really generous with other people's money!
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