The guys at UBM TechInsights have dissected the PlayStation Vita and calculated its components cost to discover that they add up to $159.10, almost half of the handheld's U.S. retail price of $299.
The majority of the cost is spent on the display and touchscreen which cost $50, compared to the handheld's quad core processor which costs a meager $16.
Of course there are other costs incurred by Sony to assemble, produce, market and deliver the PS Vita to stores, but even with factoring those costs in it is reasonable to expect that the company is making a profit of around $100 per unit sold.
Hopefully, Sony will cut PlayStation Vita price within a few months of its launch, just like Nintendo did with its 3DS.
Make sure to check the images tab to see some of the most interesting PlayStation Vita color coded board shots (teardown and shot via TechInsights).