The Blu-ray Disc drive inside every PlayStation 3 is one of
the console’s most expensive components. Fortunately, production capacity of
blue-violet laser diodes required for the Blu-ray Disc drive is ramping up
faster than originally projected, which could soon drive down costs for the
According to Semiconductor
Today, Sony Corp. subsidiary Sony
Shiroishi Semiconductor Inc. of Japan claims to have established an
industry-leading monthly production capacity of 1.7 million blue-violet laser
diodes, with preparations in place for upping it to 5 million blue-violet laser
diodes per month.Increased
blue-violet laser diode production means a lower bill of materials cost
for Sony, which could help pave the way for the savings to be passed onto
"The right question to ask is whether the full bill of
materials is below $499, allowing them to cut price and still avoid losing
money. I'm not competent to answer whether it is, but I am competent to say
that when cost is below $499, we should look for a cut to that level," Wedbush
Morgan Securities analyst Michael Pachter told GameDaily
BIZ. "The point is that if they're ramping capacity to [5 million
diodes], they probably are coming down the cost curve for MPEG chips, dedicated
disc drive processors, and every other component. Hard to say for sure, but I'd
guess that Sony could squeeze a hundred dollars out of its cost by mid-year,
"My guess is that you will see a price cut this
year," he continued. "I think that the introduction
of the Xbox 360 Elite gives Sony an opportunity to cut price and claim that
they offer Blu-ray for only $20 more."
The advanced Blu-ray hardware is partly to blame for the
machine’s premium price, spotty launch supply and the European delay. In light
of the challenges the PlayStation 3 has faced because of the next-generation
optical format, Sony stands by its hardware, calling the choice to include
Blu-ray the smartest decision it has ever made.
quote: "My guess is that you will see a price cut this year," he continued. "I think that the introduction of the Xbox 360 Elite gives Sony an opportunity to cut price and claim that they offer Blu-ray for only $20 more."
quote: There was an article posted on this site stating that eventually the Premium SKU would gain elite hardware i.e. HDMI and the HANA scaler.