ICANN spent tens of millions of dollars on this project. They don't intend to make money. They want to break even for the amount of efford the organization put in. The project has been in the works since 2006, and they'll be donating $2 million to help developing countries.
The $185,000 gets you the TLD. And then there's a $25,000 a year fee to maintain it. It's set up so whoever owns a TLD will then be able to sell addresses at them, so if someone buys .photo, they'll be able to set the price, from $10-$100, per domain you purchase. Canon, for example, plans on purchasing ".canon" as a TLD. Apple is rumored to purchase ".apple," ".ipad," and ".ipod" once this goes live. It's set up so who owns the TLD's can make a lot of money if they choose to.
It's also set up so anyone can object to a TLD being created if there's a trademark or copyright violation, to prevent squatters, or someone such as Microsoft buying ".apple." The report on this whole thing is 350 pages long.
All of what I've been talking about is public news that you can find on Yahoo or any news site.