Next-Gen.Biz writes: "Analyst Billy Pidgeon with IDC tells Next-Gen that in the wake of the Wii's success and the explosion of casual, community gaming, the PlayStation 3 could be the last of the state-of-the-art consoles.
At launch, researchers estimated that Sony lost around $240 per 60GB PS3 sold. A pricey Blu-ray drive, state-of-the-art GPU and multicore Cell processor drove costs to new heights. Xbox 360's per-unit loss wasn't much better at launch at around $125 per console, according to estimates.
And then the Wii, with its cheap "GameCube 1.5" technology came along, albeit with motion sensing, showing that Nintendo could sell a console at no loss, attract a massive following and be profitable from the start."