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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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RE: That Almost Makes Me Want to Buy One.
By STILTO on 11/17/2006 1:23:50 PM , Rating: 3
quote:
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.


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