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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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By lwright84 on 11/17/2006 10:03:52 AM , Rating: 0
but he's right.. the Wii is nothing more than a repackaged gamecube (with a few upgrades) and a new remote. why do you think that all of the Wii's E3 demos were running on gamecubes? you take away the Wii-mote and youre left with a sub-par console that has only incremental performance gains over its predecessor.

i tend to believe the theory that nintendo developed the Wii-mote before they even thought of the Wii itself. given their history with failed "accessories", it made more sense to repackage their current console with this "new and innovative" (laf) technology than it did to try and implement it with its current console.


By encryptkeeper on 11/17/2006 10:40:19 AM , Rating: 2
You didn't answer my question. How much more powerful does a console have to be than it's predecessor to not be considered the same thing? The Wii has all wireless controls, online play out of the box, it's twice as powerful as the Gamecube, it can play games from all of Nintendo's console history, online weather and news, it comes with a free game, what else do you want???


By encryptkeeper on 11/17/2006 10:44:07 AM , Rating: 3
And the demos weren't running on Gamecubes, there were dozens of Wii's on the show floor.


By lwright84 on 11/17/2006 11:54:12 AM , Rating: 2
they were shells.. the demos were running on gamecubes. of course, one could argue that they were only pre-production demos and didn't need all the extra super-duper power the Wii has in comparison to the gamecube, but the fact remains. nintendo admitted it themselves and there is photographic and journalistic evidence. stop trying to argue already.


By Spivonious on 11/17/2006 10:43:39 AM , Rating: 2
I would gladly pay $250 for an upgraded Cube than $600 for a piece of trash with no games.


By thejez on 11/17/2006 10:52:47 AM , Rating: 2
i agree actually... plus you can access games from all the old school consoles!! that's going to be a blast!


By encryptkeeper on 11/17/2006 11:05:53 AM , Rating: 2
Nintendo is poised to give Microsoft and Sony real competition. Software companies are liking the new control interface for the Wii, plus they like the lower costs for development.


By lwright84 on 11/17/2006 11:29:52 AM , Rating: 2
me too.. good thing their aren't any $600 pieces of trash with no games available.


By Spivonious on 11/17/2006 4:16:56 PM , Rating: 2
LW, you seem to have all the arguments.

First off, the Wii is not an upgraded Gamecube anymore than the PS3 is an upgraded PS2 and the XB360 is an upgraded Xbox. You can say that my computer (C2D) is an upgraded Pentium 4. You can say that a Porsche is an upgraded Volkwagen. Your argument is therefore moot and I won't pay attention to it anymore.

Second, you say the "Wii-mote" is a novelty controller and once the novelty wears off, no one will use it. Dead wrong. Using the DS (currently the best selling video game system, handheld or not) as an example, when it came out everyone said "why have two screens? Developers aren't going to use that." Look now and pretty much every single DS game very creatively uses the second screen. I see the Wii-mote and all of its motion-sensing as an incredible breakthrough in gaming. As more developers climb on board with the Wii, you will see a growing disinterest in non motion-sensing games. Even Sony threw in some motion-sensing into the SIXAXIS late in the game in an effort to compete. Bottom line, it's not a novelty and it will be used in every system in the future.

Third, everyone cares about wireless controllers, that's why every system coming out now supports them out of the box.

Fourth, addressing the Wii's online system, not enough people have broadband connections to make it worthwhile. Very few of Nintendo's target audience have ever played a game online, therefore the demand for such a feature is simply not there. Plus the entire point of the Wii is to bring in non-gamers. Have a group of friends over and have fun swinging your arms around for a while. Between everyone in my group of friends we have XB360, PS2, Xbox, Gamecube, N64, SNES, Genesis, NES, Master System, and a Saturn. What system do we always end up playing the most? The Gamecube. The games for it are simply more fun than the others. Online gaming is not what Nintendo is aiming for.

Fifth, the launch titles are great. Wii Sports and Excite Truck will give hours of fun for years down the road, Zelda and Red Steel will give hours of fun singleplayer.

Sixth, the sheer number of games available (32 last I heard) for Wii by the end of the year is a testament to how easy it is to develop for. Reviews on the web must be taken with a grain of salt.

Seventh,
quote:
the novelty of this new (read: done many times before) interface
Where has this kind of control interface been done before?

I'm always up for a lively debate, so fire away.


By akugami on 11/17/2006 5:04:38 PM , Rating: 2
I love my DS but I have to disagree with the fact that most DS games creatively use the dual screens. Most put it to good use, but a lot merely use it as some sort of inventory screen or map screen or an info screen containing health, magic, etc. Part of this can be traced to the lower resolution and smaller DS screens and it makes sense to throw some of that extraneous data on a second screen but some of it for games like Mega Man just seems to put something on the second screen to have something there rather than a blank screen. Of course, you also have games like Metroid that makes great use of the touchscreen and dual screens. I wish the dust collector on my shelf (PSP) had as much of a workout as I've given my DS.


By Tilmitt on 11/18/2006 4:20:54 PM , Rating: 2
quote:
First off, the Wii is not an upgraded Gamecube anymore than the PS3 is an upgraded PS2 and the XB360 is an upgraded Xbox. You can say that my computer (C2D) is an upgraded Pentium 4. You can say that a Porsche is an upgraded Volkwagen. Your argument is therefore moot and I won't pay attention to it anymore.


The Wii actually is an upgraded gamecube. The CPU is a direct extension of the PowerPC gamecube's one, and as far as I know it is able to run gamecube games without any modification. The PS3 and Xbox 360 are both completely different architectures to their previous incarnations. The PS2 had a MIPS CPU, the PS3 is architecturally PowerPC with of course it's Cells. It plays PS2 games by including the old PS2 MIPS hardware and graphics core on a chip. The Xbox 360 has a multi core general purposeish PowerPC CPU compared to a Pentium !!! with half the cache x86 CPU in the original Xbox, and plays original games entirely through emulation.

On top of all of this, the fact that the Wii is only twice as fast as the Gamecube, compared to many times faster for the PS3 and Xbox 360, serves to further underline the point that the Wii is, in console generational terms, only a small step up from the Gamecube.

Finally as my own personal point I would like to add...

Shit hardware does not equal innovative gameplay.

There will be games with brilliant gameplay and games with bad gameplay for all three of the consoles. The Wii merely insures that all its games will be cursed with bad graphics. The PS3 and Xbox 360 will have more than their fare share of rubbish gameplay, but the games that do have amazingly gameplay will have such a fusion of beauty and gameplay that every Wii owner will curse their folly in ever believing that having crap hardware was somehow an advantage.


By XtremeM3 on 11/21/2006 8:12:29 AM , Rating: 1
You seem to have all opinions.

The Wii is an upgraded gamecube...Nintendo all but said that.

I just see a bunch of paragraphs with your opinion, not really a debate.

Novelty not wearing off - opinion/speculation

"pretty much every single DS game very creatively uses the second screen." - opinion

"launch titles are great" - opinion

"everyone cares about wireless controllers" -opinion (actually that's an incorrect fact...but whatever)

The fact that you and your group of friends prefer gamecube games does not make Nintendo the grail of gaming.

Jeff


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs

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