Wow, that's some selective memory right there.
So the next step in denial will be saying that analysts never said the PSP price would be outragious or that they couldn't possibly make money on it selling it competitvely. PSP to cost 700 dollars? Anyone remember that?
Lo and behold, a year later from the PSP launch, Sony is making money on the PSP hardware. It was a project that was designed to make them money very early.
Sony is a hardware company, you'd be stupid to forget that. I wouldn't be suprised inn this group is just adding "Bklue Ray player" to the BOM and estimating 400 dollars for that or so. You don't, sadly, have to be an expert in the feild you make predictions in. The PS3 'blue ray' will cost nowehere near a conventional BR player.