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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 Tilmitt on 11/18/2006 4:20:54 PM , Rating: 2
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.

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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