Look, sometimes budgets are increased if there is the need.
If you planned to spend $35,000 on a BMW 3 Series, but you see that for the model you want is either $1,000 more or a Yugo, you spend the extra $1,000.
No, not in this case. Consumers aren't in it to make money
, Sony is. Anyway, in business, luxury items are normally the first thing to get cut off. When you can't afford it, you can't afford it. Even the extra $1000.
According to your reasoning, V3, PSP would have never been launched in Japan this December, they would have delayed the launch as the budget they thought was good for it had to be majorly revised: PSP was pushed through the fabs in December because Son y wanted to hit the launch date even if it would cost them a lot of money (some hardware bugs had been recently fixed and to posh the amount of units through their manufacturing plants costed a premium in that period: the volume was quite low).
No, they already budgeted for that. Last minute hardware bugs are emergency, that sometimes happend. But those are bugs.
Sony will not lose an infinite amount o money on their hardware, but they still can adjust their decisions on how much they plan to lose per unit and how soon after launch these losses can be lowered.
No, those ranges are fix when they made the investment, and plans layed out. Options like abandoning Cell, going with Toshiba, NV, ATI, downgrading or upgrading spec, those are not fix though.
Also, V3... neither Toshiba nor nVIDIA is providing ROPs/Pixel Engines to Sony: both of them were racing for a full GPU contract which includes Shaders, Texture Units, etc...
That's what a GPU is isn't ? Pixel Engine is just Sony fancy name.
Look I am not saying PS3 is low budget or anything (its probably higher than the other two for all I know), but they wont increase the cost of it, just for the sake of increase in performance, that's futile in the eye of consumers. If it other features that may be visible, like Blu Ray, maybe they'll make allowance. But going to NV because their solution is expensive and will over budget the project but it gives better performance, thats just silly. They just won't go over budget. There are too much risk involved in doing that.
Like I said before going to NV is definitely the cheapest solution for Sony. Sony Plan A solution broke the bank so not feasible, Plan B look elsewhere for solutions that meet the cost. NV won the contract because it meets their cost, where others might not.