Chips make up more than half of the PS4's manufacturing cost, the IHS teardown report found. This includes an unusually large AMD processor for $100 and $88 for 16 individual memory chips.

For a quick comparison, a search online at Best Buy reveals prices that are dramatically lower. A 42-inch HDTV costs $399.99, the cost of a PS4, while a 60-inch plasma HDTV costs $949.99.

For instance, the CPU will use the Jaguar cores from the original PS4, but with a higher clock speed of 2.1GHz. The GPU is an improved version, though, with 2.3x more computing power. The same 8GB ...

At £349.99, the PS4 Pro will in fact cost the same amount as the PS4 did when it arrived in 2013. Alphr says at that price, it's a bit of a steal.