Sony will pay estimated $800 for the PlayStation3 Merrill Lynch, a well-known financial analyst/advisor company, estimates (.pdf) the production cost of the upcoming PlayStation3 console to be about $800 US. It's unknown, at this time, what price gamers will have to pay to own a PlayStation3 when it becomes available, but $800 is more than the estimated cost to Microsoft of an Xbox360. So the PS3 might have Sony losing more money, initially, on the sale of their console than Microsoft currently is with the Xbox360. Here's a picture of the PS3 price breakdown. Here's one, for comparison, for the Xbox360.