PlayStation 3 to Sell For $399, $494 to make

[BJ_M]

Merrill Lynch Japan has conducted research that indicates that the PlayStation 3 will retail for $399. According to Gamespot's coverage of the paper, the unit will cost $494 to manufacture. Sony will thus be taking an almost $1 Billion loss in the first year of the PS3's lifespan. From the article: "It is normal for game companies to take a loss on hardware whenever a new console launches, since they typically focus on acquiring market share rather than generating a profit during the first year. During the second year and afterward, they can recover the losses with the savings that come from mass production and with licensing fees from publishers." Meanwhile, Press the Buttons is reporting on a Pro-G article in which SCEE Chief David Reeves states that "I feel proud that E3 went well from the presentations that they did...I feel very happy about that, but I told the troops: OK now we go underground.

http://www.pressthebuttons.com/2005/06/sony_to_world_q.html

[rallynavvie]

Yeah, as the article gave a little hint to they make most of their cash of the licensing and royalties from the games.

[shelbyGT]

I miss the Super Nintendo's pricing...

[zzyzzx]

I find it hard to believe that something made in China could cost that much to make.

[rallynavvie]

I find it hard to believe that something made in China could cost that much to make.

I just paid $400 for an iPod. Guess where that was shipped from?

[shelbyGT]

Malaysia?

[stryker]

After reading the system might be selling for $400, I'm reading that it won't come with a HDD (according to a Jpn Mag). Let's see, $400 for the system. Then the accessories and 1 game would be $100-120. 80GB HDD $70-$100.

Damn that's a lot of money. It better be worth it.

[lumis]

damn, for $400 you could get a pretty decent pc from dell..

http://www1.us.dell.com/content/products/features.aspx/cto_dp_dimen2400_1?c=us&cs=19&l=en&s=dhs

celeron 2.4ghz (400mhz fsb)
256mb ddr
80gb hdd
48x cd burner
keyboard, mouse, speaks
17'' CRT monitor
xp home

and you'd still have $100 left to upgrade the ram and buy a dvd burner..