I am going to guess that their costs are around $190 to $220 or so when mass producing these. They may even be taking a hit on those $199 models, just in order to get the Kickstarter project off to an amazing start, which has apparently worked. So basically they will make $100 per printer sold, maybe a bit less. Remember this is smaller than your typical reprap. The Micro is called The Micro for a reason. It's tiny! What M3D is trying to do is take advantage of economies of scale. The more they produce the cheaper they become.