PS3 to sell for $399, cost $494 to make - console
(hx) 02:19 PM CEST - Jun,29 2005
- Post a comment 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. |