Sony’s next-generation PlayStation 3 video game console might not appear in key markets this year and could cost the electronics giant $900 per unit to produce initially, according to Merrill Lynch analysts.
Sony has indicated a Spring launch for its console in Japan and the industry is not expecting a North American launch until November. But Hitoshi Kuriyama of Merrill Lynch in Japan says there are reports that the PS3 could be delayed by between six and 12 months, meaning an autumn launch in Japan and a late 2006 or early 2007 launch in the US.
Also, Merrill Lynch analysts in San Francisco have estimated that the initial bill of materials for PS3 could approach $900, falling to $320 by three years after launch.
They’ll probably include a Blu-Ray DVD drive [let’s lock consumers in whether they want it or not] and my best guess is $399 retail.
Are you telling me that Sony is going to subsidiate 500$ in every console during 3 years? Yeah right! Are you freaking nuts?
Sony is fighting a lost battle, it’s not whether or not XBox 360 has a good chance of beating Sony, XBox 360 alredy won, there is no battler to fight.
BTW I MS is also subsidising the cost of XBox 360, but it’s just 75$ on the Core and 125$ on the Pro version. Also I heard that MS is already creating a new XBox 360 Slim version using 65nm chips that will lower the manufacturing cost (thus no subsidy needed), the produced heat and will make it smaller. Apparently this will be out by end 2006/begining 2007 so it’s really a lost battle for Sony.
I’m not sure that I totally agree with the responses posted here. X-box 360 sales have been lukewarm at best after the initial buying frenzy and many are waiting eagerly for the PS3. Sony still says that they will release the PS3 this year and many are willing to pay $399. Sony will get in trouble if they delay too long but they are still the industry leader.
Wayne, XBox is _not_ an updated PC! I have an article here that shows the amazing thought that MS gave to this piece of hardware. Unfortunly the article is in portuguese, but I can tell you the XBox 360 is not just another PC, far from it.
As for Sony being in problems… yes they are.
Twig said:
“X-box 360 sales have been lukewarm at best”
I haven’t seen a freestanding unit for sale in Best Buy or Circuit city since it was announced. If MS can’t make them fast enough, that’s one thing, but they seem to be selling everyone they make. In fact, it still getting a premium to retail price on E-Bay.
I have to say that I’m very surprised that the regular X-BOX and the PS/2 have not been discounted more. I was kind of hoping to pick up a PS/2 and Xbox for about $100, just to try the platform out (and borrow friend’s games). But they both haven’t nudged at $150 retail.
Lou, in Portugal you can see plenty… well some freestanding XBox 360, not many but some.
As for discounted consoles I just saw 2 days ago a buch of brand new Gamecube’s for 49€ !!!! That’s the price of a XBox 360 wireless controller! Damn! I might get one later but Gamecube games aren’t that great so… maybe I’ll pass?
The 360 hasn’t done that well in Japan, but that market is very particular about the games. No killer Japanese game was available at launch. They’ve got the Square Enix people in their corner though, and I believe there are a few titles this summer that will remedy that. Here in the US, you still can’t find one.
Consider this though… the average number of games purchased at launch was 3, which adequately covers the hit on the console itself. Sony isn’t going to make that up.
I’ll agree that 360 has some way to go to declare it a winner, but it’ll get there with some of the forthcoming titles like Halo. Hard to believe that Sony is on the cusp of blowing a decade of dominance.
I agree Sony is in trouble, but it doesn’t all stem from the PS2/PS3. They’ve lost the innovation on all of their consumer electronics that they were fameous for; they’ve lost the quality and they’ve lost the luster in their brand.
Everywhere you read now, Samsung and LG are the “New Sonys.” They have product innovation and quality at a cost Sony can’t compete with. Sony has been losing money in its consumer electronics business for years, and the latest with the PS3 is just another missed opportunity for them.
I think that if people were so satisfied with Xbox 360 then playstation 3 isn’t even a thought. I think the fact that there’s something possible better on the horizon, brings doubt in their own system. Therefore negativity begins. I see everyone is saying what playstation 3 is but sony themselves. Let’s hear if from the company that actually make the product.
All of this talk about how expensive the PS3 is going to be, combined with the various price points for the XBOX 360, just remind me how smart a move Nintendo is making with the Revolution. They have all but confirmed a price tag of $200 or less. That budget price will definitely help Nintendo gain a lot of ground in this competition.
I can’t believe that anyone actually believes the merrill lynch analysis. Not only does it have blatant math errors in it, but it’s going against reports direct from IBM on chip yield, and it is pretending that the last 3 years Sony has been shipping Bluray recorders in japan doesn’t even exist. You can be sure that the Bluray drive will NOT cost $350. The technology is 3 years old already. DVD+RW is about the same age and it’s already under $50 retail for similar drives. The only difference is the economies of scale that the DVD+RW drives have enjoyed.
Prior Merrill Lynch articles stated $495 as the cost to produce. It looks like this time they took their target price of $900 then started going “Which pieces can we inflate to make the price higher?” and ended up only getting to $800. (They forgot to update their target total though.)
The cell chip isn’t likely to be over $150 either. I still want to see someone lay out the cost of the chip by starting at the cost of the wafer and estimating the yield and number of chips per wafer rather than just pulling numbers out of the air.
Being a hardcore gamer i hear these stories every 3 or so years when there is a new “console war” and its really gotten old.
This is bogus. The reason a retail blue dvd player costs so much is due to the fact it needs serious chips to decode and play the data. The ps3 has this built in, they pay for the optics and the base hardware. The rest is already taken care of by the ps3 hardware. They should make an initial loss but with blue ray market penetration being a given, and the usual software gains, they can expect to make even in a couple of years after release. The only thing they have to sort out is launching the darned thing soon, if they don’t then yes they are in trouble. And as some have pointed out above, Nintendo are a serious threat this time round, the Revolution could well dethrone the Sony king with it’s innovative approach and complete backwards compatibility. Just my 2 cents.
If Sony is going for the high-end market then they better add some options to their PS3. It appears that Nintendo is taking the low-end market by default.
If the PS3 could also be used as a media center then they could end up knocking out a lot of competition, and not just MS. I don’t know what it will come with, but by using the Blu-Ray as a start, adding some solid video graphics, and a good sound system they could be the center of every living room.
But I still haven’t forgiven Sony for their root kit fiasco.