Ps3 May Cost $900 Or Twice As Much As The Xbox 360

According to Merrill Lynch, because of the cost of hardware components, the PS3 may cost twice as much as the Xbox 360 by the end of 2006. The report includes estimated breakdown of hardware costs by component at the time of launch and 3 years from now.

The new figures show that the majority of the cost are from the Blu-Ray drive, and the Cell processor which total $580 alone. After three years, the manufacturing cost of the two will drop to $180 total.

Several months ago the same team released data which compared the cost of the PS3 to the Xbox 360 (see below). As you can see, the estimated costs of Blu-Ray and the Cell Process have increased dramatically.

On the cost of goods side, Merrill Lynch believes that the Cell processor will initially cost $230 to make which is more than the Xenon CPU which currently rings in at $100.

Though price reduction will eventually drop to approximately $30, both the Nividia’s RSXand the ATI’s cost about $70 each to produce.

iSuppli, a well know Market researcher, did a break down on the cost of all the components used by Mcft in the Xbox 360 and found that the cost per console is roughly $525, or almost $400 dollars less than thn the Sony PS3.

The results of the report are based on the assumption that Sony will have to sell at a loss due to the estimated costs of hardware. However, if Sony is willing to be aggressive on pricing with PS3, the report concedes that many of these numbers are likely to change.[/quote]







Resource at : http://www.xboxtoday.ca/02182006/12/sony_ps3_900

info from a non-biased site ( Gamespot )

According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006.

Merrill Lynch Japan estimates that the machine's main components--namely its Cell chip, RSX, and BD-ROM drive--will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine's production cost goes up to 54,000 yen.

Given that Sony's PS3 will face stiff competition from Mcft's Xbox 360, the chances that Sony will release its console at its production cost is slim. Under the assumption that the Xbox 360 is expected to sell at around $299, Merrill Lynch Japan predicts that Sony will sell each PS3 at the price of 44,800 yen ($410) in Japan and $399 in America. That would mean Sony would suffer a loss of more than 130 billion yen ($1.18 billion) during the first year of the PS3's release.

By comparison, the PlayStation 2 cost 39,800 yen ($364) in Japan and $299 in America when it launched in 2000. During its first year of release, Sony Computer Entertainment suffered a loss of 51.1 billion yen ($458 million), but it recovered the next year with a profit of 82.9 billion yen ($759 million), followed by 112.6 billion yen ($1.03 billion) the year after.

 

well thats going to put them down alot, they will loose alot of money on this.

 

i just hope i get enough i wasted 100 on some PSP games xD

 

Companies nearly always take losses on initial sales in order to get a solid install base. Sony did it on the PS1 and PS2, MS did it on the the Xbox and is currently doing it on the 360. Most sources are estimating a $4-600 price range depending on how agressive Sony desides to be. Sony isn't stupid, they saw how well a near $1000 console sells (Yaroze and PSX anyone?).

 

yeah i read this today too, i am shocked! 900 bucks isnt worth a next gen console no matter how good it is, it still is way TOO one dimensional. so what if it can be used as a pc, but no one will use it cause it only supports linux (and everybody knows how to use linux *wink*). biggest dissapointment of the week for me. the console i was looking forwards to 900 bucks not including tax too!.

 

That's gay. I was really looking forward to PS3.

Now I guess I'll settle for XBO60.

Hopefully they lied.

 

Enjoy the fine,

Andrew

 

How much was the fine ? :S l0lz got fined by 200 credits amazing ... Anyways i dont need the credits at the moment :lol:

 

it will be an awsome machine ... but $800-$900 , wow .. lol thts alot of money

 

I am sure there will be a lot of buyers .. Famous/artist people will even throw $900 for that console >.<

 

They said similar things about the price of the 360 before it came out, then when it came out it wasn't any where near the originaly estimated price. So, chances are that the PS3 will probably cost somewhere between three or four hundred.

 

wow that's really unbelievable.... I know PS3 was gonna cost alot more to make, but i didn't suspect it to be that high. I'm probably gonna be cheap and wait 3 years to buy one and play my friends until then lol

 

yeah, I read this about 2 days ago. NOBODY in the right sense of mind is going to buy a PS3 right away...they say in a year it will drop to 300 LOL still pretty high up there

 

LMFAO. I hate to say I told you so.

 

Not sure if it'd be expensive, I'll just wait till it releases and see for myself.