Early 2007 due to high costs ($900 per unit! )

http://rsch1.ml.com/9093/24013/ds/276873_0.PDF

Chris

 

For 900 bucks a pop it better give you a reach-around.

 

for $900 bucks, they're gonna have to buy themselves :/

 

According to the link it says $900 to manufacture. Therefore, wouldnt that mean that is Sony's cost without the markup? So wouldnt it be like well over $1000 for consumers? Just wondering...

 

The analysis is full of overvaluations on components. Consoles are also sold at a loss. Manufacturers make money on licensing to game developers.

 

I guess alot of you don't know how much the PS2 costs to manufacture. They always take a loss on consoles, and get it back 10x if not 100x on software.

 

yeah but this is a pretty big loss to cover per unit. They'd have to price it at $600 which IMO is too much. PLus they are going to build it with unproven technology (blu-ray). They might really be taking it in the ass if it doesn't play out 100%.

This is the time for x360 to really put on the muscle. PS3 is on its back right now and 360 really needs to make a HUGE push. They're giving away a golden opportunity.

 

For comparison sake, it's reported that Microsoft's cost on the Xbox 360 platform is approx. $715. Link It's interesting that in this article they note the manufacturing costs are still too high.

Regardless, nearly $200 more to produce PS3 is a VERY substantial amount.

On a broader spectrum, think about how much this will hurt Sony in the long-run. Both Sony and Billsoft typically try and release platforms around the same time as each other. If Sony attempts to continue this trend they are essentially cutting a year's worth of sales from the product life cycle of the platform. On top of that, when Xbox 360 comes back out there will be no competition. Thus, many Sony gamers have a high propensity to switch to the Xbox platform; now losing additional future sales.

It's looking like "The House of Pain".

Chris

 

damn.....I want a new system this year i ws hoping PS3 would be out, hmm xbox.....

 

....and so the migration begins......