Not if Merrill Lynch has no idea about what they are talking about.
psinext has a great rebuttal to the recent Merrill Lynch report. Starting with its lack of professionalism (they miscounted their bill of materials, repeatedly mentioning $900 even though it adds up to $800) through to cell chip costs, and to other items.
http://psinext.e-mpire.com/index.php...d71322c09662b3
Sony also says different.
http://www.gameshout.com/news/022006/article3312.htm