Playstation 3 Price Drop soon?

Well, if they were losing money on just parts/labor, then I guess the R&D had to be priced into the parts. If not then they were getting pummeled bad. I don't know what their cost allocation technique is, but cost allocation is why the government reports "200 dollar toilet seats" or whatever. They've allocated R&D and other indirect expenses down to each part, and inflated the cost associated to it much beyond the actual cost of that toilet seat or what have you.