if this is the case how did xbox get made or the new ps3 at such a loss or even the psp?
"NG : Sony is saying that PlayStation will come out at $299 in the US, and rumors would suggest that a $249 price is possible. This would be a tremendous threat even to a $149 Jaguar, right?
Sam : If Sony comes in at $249 or $299, we'll do whatever we can to have the ITC -- that's the International Trade Commission of the United States -- to go after them. That's called dumping. You can't have the Japanese consumer paying a fattened dollar price, then subsidize the product and dump it in the United States for $249 and kill the US manufacturers. It's against the law.
NG : There's actually a law against doing that?
Sam : Yes. It's absolutely against the law. That sort of operation is called dumping and there's an anti-dumping provision.
NG : And Atari would have no hesitation in bringing the law into effect on this one?
Sam : In a nanosecond. You can't do that. We'll go for it, we're not going to be put out of business.
NG : So what would you see as a fair price -- a legal price -- for PlayStation in the US?
Sam : $500.
NG : The same as it was priced in Japan."