Not to you, dear consumer. Well...yeah, they do. But take solace in the fact they cost Sony even more. iSuppli got their hands on one and tore it open, and while they thought it was a polished, well-built machine, that comes at a cost:

It's common for video-game console makers to lose money on hardware, and make up for the loss via video game-title sales. Still, the size of Sony's loss per unit is remarkable, even for the video-game console business.

Not including cables and controller, the 20GB costs $805 to manufacture, and is selling for (in theory, at least) $499. The 60GB? Costs $840 and goes for $599.

That explains why they're short-changing everywhere on the 20GB models; they're losing less money on them. Luke Plunkett

PlayStation 3 Offers Supercomputer Performance at PC Pricing, iSuppli's Teardown Analysis Reveals [iSuppli]