yes.......Sony's stance has always been take a hit on hardware early and make most of it up on software later(licensing, development support, bd mastering, etc.). Of course, after reducing the production costs of the hardware it will eventually turn a profit. As did the PS1 and PS2. Although its been rumored that this is the largest hit they have taken on hardware(several hundred dollars per unit instead of a hundred dollors or less). With the CELL chip die shrinking in size(90nm to 65nm to 45nm) costs are lessened, a well as blu-ray laser diode costs coming down the hit they take lessens over time.
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