Initial cost of the PS3?

Loner · Post by **Loner** » 2005-08-12 05:44pm

The initial manufacturing costs for the PlayStation 3 are suspected to be around $494 USD.

A recent report estimates that the launch costs for the three main components of the system are the RSX graphics chip, Blu-Ray disc drive, and the Cell processor. The cost is $101 USD each.

In an attempt to beat Sony's new PS3 system price, Microsoft Xbox 360 could cut the $299 launch price even lower. Sony PlayStation 3 hardware will initially retail for $410 USD.

Sony has traditionally taken large losses on its new hardware to gain a market share advantage, however, it may face a disadvantage if forced into a price war, as Microsoft and Nintendo are each making more conservative choices when it comes to hardware: Microsoft is using the currently-existing DVD spec for its own media, while Nintendo has eschewed support for high-definition video, in the interest of maintaining its own history of turning a profit with each console unit sold.

Furthermore, Sony is currently still taking losses on its PlayStation Portable hardware in a continued, not yet successful attempt to beat the Nintendo DS and Game Boy Advance in the handheld game marketplace. The PlayStation 3 is currently expected to result in losses of over $1 billion in its first year of sales, in addition to the $1.83 billion already invested in R&D for the Cell chip, co-produced by IBM and Toshiba.

Bring on the discounts.

SPOOFE · Post by **SPOOFE** » 2005-08-12 06:53pm

This one's pretty old, and since this information has come out, there have been rumors about Sony pushing the PS3's release back... if so, it could be due to the cost of these components.

Grandmaster Jogurt · Post by **Grandmaster Jogurt** » 2005-08-13 12:45am

Exactly how much of a loss is it legal to sell a product like this for?

Captain tycho · Post by **Captain tycho** » 2005-08-13 06:47am

Nearly 500 bucks? How is Sony expecting to make any money off of this>

SPOOFE · Post by **SPOOFE** » 2005-08-13 07:39am

Nearly 500 bucks? How is Sony expecting to make any money off of this>

Sell an average of, oh, five or six games for every console sold, and they'll break even. Rough guesses.

Praxis · Post by **Praxis** » 2005-08-13 12:12pm

Just remember, don't treat speculation as fact, the cost prices in there are ALL speculation.