Analysts, schmanalysts. Punch Jump news
posted an article Friday regarding Sony's manufacturing costs for the PS3 and the outcome, determined by analysts. Each PS3 unit, regardless of the SKU, costs Sony $750 dollars to manufacture. After a year, the analysts predict, Sony will get hit with a $2 billion deficit. To Sony, that may not be much, but that really is a damage dealing amount regardless of your company's current position.
Sony expects to make up for the pitfall with positive game sales. If their expectations fall short, there's danger to be had. Especially since manufacturing and development costs are high,