According to financial analysts from Merrill Lynch the Sony PlayStation 3 is going to cost $800 per unit at launch. This is the production cost, the retail price of consoles is mostly a lot lower because consoles are sold at a loss.
Doesn't sound unreasonable considering what Sony's trying to get under cram under the hood of this thing; Lynch calls it an "expensive and difficult-to-manufacture product" because of the Cell processor and Blu-ray drive, which account for the lion's share of the backend parts costs (see above).
Granted, most of this analysis comes off as estimation and prediction, but we'd like to make a prediction of our own: the PS3? She's like Kutaragi's Spruce Goose. Oh she'll fly alright, but at what cost?