He is figuring R&D costs, which really shouldn't be figured in because that's part of doing business. If you don't R&D, you don't come out with new products. With no new products you're really not in business anymore.
There is a definite difference in business attitude between Nintendo and Sony. Nintendo understands that it is vital to sell as many units as possible to make money in the long term, for the reasons I keep stating but keep being ignored by Flores. Sony's attitude is they want as much profit as possible per unit and don't seem to think about how that may hurt sales. The memory card situation is a perfect illustration of that because the markup on those is ridiculous. That is price gouging plain and simple, since the thing is required to make the Vita useful.
This is why Nintendo has been in the video game business for so long, and has dominated the handheld market in particular since the original Gameboy. They understand the market and their customers. I'm not sure what Sony understands in recent years except for how to excel at being stubborn. I do hope they come to their senses next year though because I want to see them succeed. They have incredible engineers who design some of the best electronics on the market. It's too bad their business decisions have been so dimwitted in recent years.