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Sony's $89 Cell processor
iSuppli calls the PlayStation 3 an "engineering masterpiece"

While Merrill Lynch may be one of the few firms projecting a win for the Xbox 360 by 2011, a new cost analysis for the PlayStation 3 puts a few more things into perspective with regards to the next generation console battle.

It looks as though Ken Kutaragi was right when he stated that the PS3, which will be priced at $499 and $599 respectively in the United States, is probably "too cheap." According to a new cost analysis by iSuppli, Sony will lose $307 for every 20GB PS3 it sells and $241 for each 60GB version. "With Sony taking a smaller loss on the higher-end model, it's not a surprise the company is steering customers to the 60Gbyte version," said iSuppli. For the United States, 20GB PS3s will account for 20% of the sales mix while the 60GB versions will take the remaining 80%.

Although its initial losses with the PS3 will be large, Sony co-chief operating officer Jack Tretton points out that the original PS and the PS2 became "incredibly" profitable after taking massive losses at launch.

iSuppli summed up it results by stating “While many fret over the high cost and price of the PlayStation 3 compared to the competition, iSuppli believes the console provides more processing power and capability than any consumer electronics device in history. Because of this, the PlayStation 3 is a great bargain, well worth its $599 price and $840.35 cost, iSuppli believes."

Microsoft, which was once seeing red to the tune of $153 per unit sold, is now making a profit of $75.70 on each console before marketing and distribution costs a year after launch.

Nintendo has already stated that it will make a profit on every Wii that it sells. Given that CompUSA lists its cost for the Wii at $237.50, Nintendo's actual costs are likely closer to the $200 mark. That shouldn't be too surprising given that Microsoft's Richard Teversham likened the Wii to a Gamecube with a DVD drive (someone should tell Tevesham that the Wii doesn't actually play DVDs…for now).

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That Almost Makes Me Want to Buy One.
By BladeVenom on 11/17/2006 2:34:52 AM , Rating: 0
If I was sure it was true, I would buy a couple. One as Linux box, the other for folding.

$840 to produce sounds way too high though. You could build a nice PC for that, that would kick the PS3's electronic butt.

RE: That Almost Makes Me Want to Buy One.
By phusg on 11/17/06, Rating: 0
RE: That Almost Makes Me Want to Buy One.
By WhiteBoyFunk on 11/17/06, Rating: 0
RE: That Almost Makes Me Want to Buy One.
By thejez on 11/17/2006 10:47:53 AM , Rating: 2
you dont need bloo-rhey on the PC... you download high-def right to the disk... ps3 is way overpriced... plus the directX10 cards already blows its little gpu away.... oops.

By The Sword 88 on 11/17/2006 6:50:37 PM , Rating: 3
Yeah a single 8800GTX costs as much as a PS3

RE: That Almost Makes Me Want to Buy One.
By BladeVenom on 11/17/2006 12:19:16 PM , Rating: 3
Why, do you hate Sony that much? ;-)

The usual stuff that most people hate them for. Rootkits, RIAA, MPAA, and the DMCA.

Why not fold on the Linux box too? ;-)

With only a pathetic 60GB hardrive, and a measly 256MB of main system memory you probably would want at least two.

Please post a link to the Blu Ray drive you would build into this system...

With the format war looming, I don't know who will win, or maybe no one will. Until that time, I'd rather stick with a DVD burner, and lots of hard drive capacity. Even if digital distribution doesn't win, at least the hard drives will be still be usefull, unlike a failed optical format. Check for hard drive sales.

RE: That Almost Makes Me Want to Buy One.
By STILTO on 11/17/2006 1:23:50 PM , Rating: 3
The usual stuff that most people hate them for. Rootkits, RIAA, MPAA, and the DMCA.

I agree! Sony is the worst manufacturer out there BECAUSE they have so much influence. Sony is in too many markets and are doing too many shady transactions they think we'll never know about. As far as HD-DVD and Blu-Ray go, I've always believed that the unprotected optical disk is a conspiracy against the consumer. (Especially when Sony pulls some stunt making it near impossible to backup your purchase!) One scratch and you have to buy a new one. If Sony wasn't a bunch of selfish pigs, the Minidisk would have been the storage of the future!

By akugami on 11/17/2006 4:02:49 PM , Rating: 3
I agree Sony is a bad manufacturer but I don't know about the worst manufacturer. I don't care about Sony's influence so long as they create products and services that I want and that benefit myself (and to consumers in general). Sony's RIAA support, rootkits and abuse of the DMCA as well as the general drop in quality of their products since the late 80's and early 90's is what makes them a bad manufacturer IMHO. Their products and company direction lately seem more self serving than serving their consumers.

RE: That Almost Makes Me Want to Buy One.
By Playto on 11/17/2006 8:43:51 AM , Rating: 3
$840 to produce sounds way too high though. You could build a nice PC for that, that would kick the PS3's electronic butt.

Somebody needs to educate this guy on computers. The Cell processor for starters, a brand new 8 core one of a kind CPU if compared to current market would easily sell for $800+ if you look at the current cost of the new quad-cores that have just now hit the market quad being only 4. Yes I do realize they are not the same style of CPU but you get the point. Next your blue-ray drive so far looks like $600-$650 which almost covers the entire $840 cost alone. Then you still have to include a graphics processor, HDMI ports, and Hard Drive. When you release your spreadsheet of the PC that beats the specs of the PS3 while staying under the $840 price barrier post it please.

By marvdmartian on 11/17/2006 9:37:03 AM , Rating: 2
Maybe he meant he could build something that could play current games better than the PS3?? Comparing the cpu's is a waste of time, if the PS3 doesn't use a computer-style cpu. The blue-ray drive is going to be good for future-proofing the system, but isn't really necessary at this point in time, is it? Honestly, how many games are available on blue-ray, versus dvd?? With new graphics cards coming out all the time, "yesterdays" video cards, while still kicking some serious butt, are dropping in price pretty quickly (as always). Hard drive prices have dropped in the past year too.

Really, the only place where it could potentially hurt you by building a similar performing pc would be in buying the ram, which went up pretty high in price in recent months. And by the time you need blue-ray drives, the price of those should drop pretty considerably (or the technology will have been bypassed by something newer/better).

So if you compare the performance, versus the technology, the OP is probably close to the truth. Doesn't matter anyways, as once Sony builds more of these things, the price will start to plummet for them, and their profit margin will go "into the black" for the remainder of this game system's life cycle.

By BladeVenom on 11/17/2006 11:50:16 AM , Rating: 2
You're embarrassing yourself. Trying to compare a bunch of mostly useless cells to a mainstream multicore processor. You obviously haven't even read what's been written by Anandtech. You're just spouting a bunch of fanboy nonsense.

" of a kind CPU..." -Playto

The first thing you have to keep in mind is that Cell’s architecture is nothing revolutionary, it’s been done before. -Anand

The Cell processor doesn't get off the hook just because it only uses a single one of these horribly slow cores; the SPE array ends up being fairly useless in the majority of situations, making it little more than a waste of die space.

I can't wait to see how well it runs most Linux programs.

By kamel5547 on 11/17/2006 4:18:27 PM , Rating: 2
... ok if you want us to pay retail cost for the BLue-Ray then add $799 to the cost of the PS3 as Sony's stand alone player retails for $999 on Amazon... not only are they losing money on the console, but they aren't making money that they could have. So I guess taking that into consideration the price of the PS3 to Sony is somewhere in teh area of say $1500. The teardown value for the PS3 only values the Blue-Ray at $200....

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