FSUViking
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<span style="color:#993399">Found these blurbs at Joystiq.com </span><div class='quotetop'>QUOTE </div><div class='quotemain'>PlayStation 3 estimated to cost $800 per unit [Update 2]Posted Feb 18th 2006 5:15AM by Conrad Quilty-HarperFiled under: Culture, Sony PlayStation 3, Microsoft Xbox 360A team over at the investment firm Merrill Lynch took the liberty of breaking down the component costs of the PlayStation 3, concluding that the PS3 will cost Sony $900 per unit at launch. The figures which are based upon estimates and predictions, show that the lion's share of the parts costs come from the Cell processor and Blu-Ray drive, which total $580 alone. Fortunately for Sony, the firm has also estimated that the console's cost after 3 years could drop to $320.What these figures show is that the fate of Sony's console lies in the circuits of two components: the Cell processor and the Blu-Ray drive. It's in Sony's interest to make sure that Blu-Ray drives and Cell chips are sold in vast quantities, which will lower prices and limit the amount of money that Sony will lose on each console. Of course we still don't know how much Sony will be willing to subsidize PS3s. Previous rumors have hinted that the PS3 will launch at $500. In other words, a $400 loss on each console.For a little perspective, lets take a look at a similar example in the same industry, the Xbox 360. Earlier estimates suggested that the Xbox 360 costs $715 to make which means Microsoft is willing to lose around $350 per console sale based on a $299-399 retail price. If Sony wants to remain competitive with Microsoft (does it?) and rival the Xbox 360's price, it could lose as much as $500-600 on each PS3. Finally, it's worth noting that these companies have money to lose: as Yahoo finance indicates, Microsoft and Sony both have mountains of cash at their disposal. Although Microsoft happens to have a lot more.</div><div class='quotetop'>QUOTE </div><div class='quotemain'>PlayStation 3 could be delayed until next yearby Conrad Quilty-HarperThe North American launch of the Playstation 3 could slip to 2007 if the Merrill Lynch report we blogged about earlier is to be believed. The report states that as a result of Sony's design choices the PS3 is an "expensive and difficult to manufacture product" which could have the consequence of delaying the launch until next year. The components that seem to be causing the most trouble are the Cell processor and the Blu-Ray drive.The Cell processor is a very complex chip which means it'll be a difficult and expensive part to manufacture. Processors are often a reason for delays in the computer industry (3GHz G5 PowerMac anyone?) so it's possible the Cell could be a factor in any potential slippages for the PS3. The second problem is Blu-Ray. The standard is so new that no-one is making the drives, resulting in another expensive component. The inference is that Sony might delay the PS3 until Blu-Ray is a more established format in order to reduce their losses.What we've got here is a waiting game. The longer Sony waits to launch the PS3, the less money it'll lose on its consoles. However, as long as the PS3 remains off the market Sony runs the risk of losing out to its competitors.</div>
