Why is everyone saying that the PS3 will cost over $500 when it only takes $494 to make, while the 360 costs $715 to make, and it sells for $400.
Dragondudefla

Where did you get the $494 price tag?  Sony is putting in super high-tech components (cell CPU, Blu-Ray, Video w/HD support).  Since "just"  Blu-ray machines are expected to be out this year with a $500 to $1000 price tag, the PS3 actual cost will be higher than any price they sell it.  

I will probably buy one when the price drops.  I get the consoles with the good games after they are mass produced!  I can play great games for a least the next year with the current-gen consoles.  The 360 will drop when PS3 or Revolution comes out.  After the initial mass purchase of PS3s, they will have to lower the price to hit the people who can't afford the $500-$700 console on day one.