Playstation 3 to launch under $500

[Xantar]

Well, a price of $465 wouldn't really surprise me. Look at how much stuff is in the PS3. That's going to be expensive, and I would bet that manufacturing the thing costs Sony more than $500 per unit. Blu-Ray technology alone should be worth $200, and then you factor in all the processors and all the ports and attachments for various memory...

It's going to be expensive for Sony, and it will probably be expensive for buyers. At least in the beginning. But at the same time, they can pretty much set any price they want and the thing will fly off the shelves thanks to Sony fanboys, so why worry?