don't forget that these are two distinct product groups consoles have always been sold (by manufacturers and stores) as loss leaders and the money is made on the games, movie players are supposed to make a profit by themselves. Also they are completely opposite, BD as a new format would be expected to have high margins on players but PS3 as a console will have losses. The issue is that if they put everything (what is needed) that was in the PS3 and sold it as a player it would not sell anywhere near that price.