There's a lot of talk
lately about Merrill Lynch Japan's comments in Toyo Keizai
, a Japanese magazine. According to their calculations the PS3 will cost $494 per unit to produce. They speculate that due to the cost, Sony will not be able to sell the PS3 for less than $399. Even at that rate, Merrill Lynch estimates that Sony will lose around $1.18 billion on the hardware sales. While the Xbox 360 will sell for $299, Sony PR reps have stated that they believe that consumers will be willing to pay a little more for a superior product.