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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 11:28:58 AM , Rating: 0
it's not twice as powerful, the hardware is mostly the same save a few upgrades.. that is mostly my point. i wasn't attempting to answer your question, i was simply correcting your statement, and then adding my own opinion.

as for the rest of the features you listed: who cares about all wireless controls (nevermind that their are wired controllers for the Wii)? none of the launch titles, and most early releases, will take advantage of Wii's online play. who cares about online weather and news? the same thing people are criticizing the PS3 and x360 for (being more than a gaming machine) is now being touted as a feature of the Wii? give me a break.

the free game and back catalogue of Nintendo games are basically it's only advantage, albeit very cool ones, (and of course the novelty of a Wii-mote) and it has less industry support than the PS3 or the x360. you essentially making a mountain out of a molehill.


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