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Playstation 3 likely to price at $400 US |
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Thursday, 07 July 2005 |
 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 Microsoft'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.
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