Playstation 3 Costs $900

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dipdude

Forerunner
According to Merrill Lynch, the PS3 will cost Sony $900 per unit at launch.

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If there are some people out there right now who are in the know when it comes to what the hell is going on -- we mean really going on -- with Sony, it's those investment firms. But even barring their research analysts getting all kinds of privvy information from direct executive input or connections on the supply side, it's kind of funny when one of these investment firms lets loose some juicy gossip. Like that Sony's albatross PlayStation 3 is going to cost them $900 per unit at launch. $900 per unit? Doesn't sound unreasonable considering what Sony's trying to get under cram under the hood of this thing; Lynch calls it an "expensive and difficult-to-manufacture product" because of the Cell processor and Blu-ray drive, which account for the lion's share of the backend parts costs (see above). Granted, most of this analysis comes off as estimation and prediction, but we'd like to make a prediction of our own: the PS3? She's like Kutaragi's Spruce Goose. Oh she'll fly alright, but at what cost?

P.S. It's worth a reminder that game companies always sell these things at a loss at launch, so we shouldn't have to worry too much about ponying up about a grand for a PS3. Eh, maybe only seven or eight hundred.

Merrill Lynch PDF
 
Hmm, has anyone tried adding the PS3's column. If i do it, it turn out to be $700. If some website posts such values, how much can it be trusted?
 
Damn... I will have to wait for sometime then before pulling d trigger on PS3. I have bunch of games (GT3, GT4, SRS) and was looking forward to enjoy them too with new relases of PS3.

Damn suddenly everything is going to cost me a bomb .
 
kido said:
Hmm, has anyone tried adding the PS3's column. If i do it, it turn out to be $700. If some website posts such values, how much can it be trusted?
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dude the site in question is Engadget and the company Merrill Lynch, about the total it is not 900 nor 700 it adds upto 800.

The thing to remember is, this is just the BOM cost, add manufacturing cost, margins, sales, marketing, packaging, transport etc etc and it would easily touch $900.

Ofcourse on release the price might be $700 if sony takes up initial loss to target more sales, and this is a practice some mfgr's do follow.
 
sony will have to price it lower than $500. Consoles thrive on economy. And $700console, be it sony its hard to digest.
 
The cost of Blu-Ray is too high. Sony is trying to do too much with one device - why should the golden goose be sacrificed to Sony's obsession with being right about the next format?

If you replace the 350$ BluRay with a normal DVD RW, and count in Sony's cost absorption, the PS3 would have been cheaper than the Xbox360 even on launch.

Unless they can show that BluRay is REALLLY REALLY great, I don't think they will find any buyers. Even if they do, I have no hopes.

I wonder why the Blu-Ray thing is going to be so expensive anyway.
 
kk said:
The cost of Blu-Ray is too high. Sony is trying to do too much with one device - why should the golden goose be sacrificed to Sony's obsession with being right about the next format?
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Well said. I totally agree with you.
 
there goes sony's chance down the drain and the time till they have come to 300$ Xbox will be way ahead and ruling the roost.........sony must be mad to be putting blu ray in their console.......
 
You kidding me goldy? Take it from me, the ps3 will NOT launch above 600-700. And it will fall to a damn near 300-450 within a year. And besides, spending that much is reasonable, considering the components in the ps3 (Blu-Ray drive, cell processor, GFX 2x the power of a 6800U, a 3.2Ghx proc, plus ps3 is stated to only have 65% of its priorities dedicated to gaming) Remember The Xbox had components worth 400$ at the time of its launch, and M$ still looses at every piece of Xbox sold. Sony learnt its lesson with the PSX, which costed 900$, and hardly sold. I don't think with that experience Sony is going to repeat it with ps3, and besides that's ONLY ps3. Rev is stated to be even lower in price than X360, which is 299, and we can expect a price cut by this year end.
 
sony cannot bring it out at anything more than $500. If they do then it will affect the sales adversely.

Problem i see is even if i hate consoles this is not the good sign for sony. Their this sector is making profit and if they loose huge amounts on consoles and fail to recover it quickly enough through game frenchaise then it could spell trouble for sony. And i would hate to see that.

Unlike M$ sony has finantial concerns at the moment.
 
I am 110 % Sure that PS3 is not goin to be launched at $900{ coz that would mean sucide }, hell its not goin to be launched at $800 either. I am expecting it to be around $600 - $700 at the launch ! And anyways PS3 will flourish in INDIA only after about an year of its launch when the modchips are available. Till then there would be further price drop to around $500. Now $500 for a next gen console seems resonable to me , especially when u compare it to a gaming PC which costs more than 50 k.

Becoz of the cost problem sony is having with PS3 , iam having a GUT Feeling that sony will follow M$ Path and they will not include blu-ray in the core version of PS3 ! So well that would mean a further $350 price drop !! So The possibility is that PS3 will cost even less than xbox 360 at its launch !
 
Imo 900$ would be the manufacturing cost, ofcourse sony would need to spend that much to make the console. But just like ms needs $700 or so to make the x360 but needs to sell it @ $400, same will be the case with ps3. Sony will take losses and subsidize the cost of the ps3, charge more for licensing and software, accessories. But even with all this the ps3 will end up costing around 450-550$ or so.
 
^^^ 450-550 $ dont u think thats resonable ?? Especially for a console which is a little powerful than xbox 360 ! Plus dont forget about the Blu-ray ! I think Blu-ray wont be included in the core version and that would mean that PS3 would cost even less than a 360 !
 
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