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Motion
10-19-2005, 08:30 AM
http://www.gamespot.com/news/2005/06/28/news_6128295.html



Report: PS3 to sell for $399, cost $494 to make

Merrill Lynch Japan predicts Sony will lose more than $1 billion on hardware during its next-gen console's first year on the market--a sum it may not be able to recoup.

According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006.

Merrill Lynch Japan estimates that the machine's main components--namely its Cell chip, RSX, and BD-ROM drive--will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine's production cost goes up to 54,000 yen.

Given that Sony's PS3 will face stiff competition from Microsoft's Xbox 360, the chances that Sony will release its console at its production cost is slim. Under the assumption that the Xbox 360 is expected to sell at around $299, Merrill Lynch Japan predicts that Sony will sell each PS3 at the price of 44,800 yen ($410) in Japan and $399 in America. That would mean Sony would suffer a loss of more than 130 billion yen ($1.18 billion) during the first year of the PS3's release.

By comparison, the PlayStation 2 cost 39,800 yen ($364) in Japan and $299 in America when it launched in 2000. During its first year of release, Sony Computer Entertainment suffered a loss of 51.1 billion yen ($458 million), but it recovered the next year with a profit of 82.9 billion yen ($759 million), followed by 112.6 billion yen ($1.03 billion) the year after.

It is normal for game companies to take a loss on hardware whenever a new console launches, since they typically focus on acquiring market share rather than generating a profit during the first year. During the second year and afterward, they can recover the losses with the savings that come from mass production and with licensing fees from publishers.

However, Merrill Lynch Japan warns that the normal console business cycle may be disrupted if Microsoft cuts the Xbox 360's price when the PlayStation 3 launches. The report goes on to say that such a move could hurt Sony's plans, bringing an additional loss of 80 billion yen ($730 million) in its second year and 50 billion yen ($457 million) in its third year. Thus far, Sony has already invested 200 billion yen ($1.83 billion) into development and production for the Cell chip alone.

mor911
10-19-2005, 08:51 AM
Not to sound like a prick, but that's not a prices release... That's a guess-timation by Merrill Lynch.

Motion
10-19-2005, 10:21 AM
Not to sound like a prick, but that's not a prices release... That's a guess-timation by Merrill Lynch.

True, but they were on the money with the Xbox 360.

ohall
10-19-2005, 10:25 AM
The PS3 might not even make it out until late '06 or early '07. We'll all have a lot of time to save for it!

Motion
10-19-2005, 10:28 AM
The PS3 might not even make it out until late '06 or early '07. We'll all have a lot of time to save for it!

Says who?

mor911
10-19-2005, 11:27 AM
True, but they were on the money with the Xbox 360.
indeed :D

ohall
10-19-2005, 11:35 AM
Says who?

In order to have the PS3 ready for when they said it is going to be ready you have to have orders placed in factories. No such orders for parts have been made by Sony.

The reason everyone knew for sure when XBOX 360 was coming out was because the orders for parts from MS in factories were verified.

UltraDol-Fan
10-19-2005, 12:09 PM
I doubt I'll buy one anyway. They really don't have any games I care about.

Slappy8800
10-20-2005, 12:07 AM
ok 399 and u get what?

ohall
10-20-2005, 12:16 AM
ok 399 and u get what?

No one knows for sure yet what PS3 will actually be like. A lot of sources say Sony has not yet finalized there specs yet.

Motion
10-20-2005, 06:27 AM
No one knows for sure yet what PS3 will actually be like. A lot of sources say Sony has not yet finalized there specs yet.

I've heard the same. There are still debates going on on what will be included with the package. Most likely no hard drive though. :shakeno:

Deus Ex Dolphin
10-20-2005, 10:38 AM
Wow, can Sony afford to lose $1 billion? We all know MS can, easily. It looks like MS will squeeze Sony on pricing. Sure the early/hardcore gamers will pay $400 or more to buy a console, but the average person?

No way.

$199 and lower really gets console sales moving, and the first console to that point should do well. Which BTW, should be the Nintendo Revolution, though most see Nintendo as a niche console, mainly for fans.

We know you get a Hard Drive, HD cables for your HDTV, a remote, an Xbox Live headset, and Silver level Xbox Live service for your $399 with the Xbox 360.

What does Sony give you for $399? No HD? No online service? No HD cables? No remote?

Motion
10-20-2005, 11:45 AM
What does Sony give you for $399? No HD? No online service? No HD cables? No remote?

Sony hasn't even decided on that yet. Who knows

VanDolPhan
10-20-2005, 01:09 PM
Sony hasn't even decided on that yet. Who knows

Sony executives have also gone on record twice stating that the PS3 will be "expensive". Not that I really take their word. Sony marketing machine are pro's at lying their rear ends off.

Deus Ex Dolphin
10-21-2005, 12:47 PM
Sony hasn't even decided on that yet. Who knows


Well going by the numbers in the article you posted? Sony can't afford to just "give away" any PS3 extras. They'll need to sell you the HD cables, the Hard Drive, etc.

I'll be shocked if that $399 price includes anything except the console, a controller, and standard AV cables.

BALLS DEEP
11-03-2005, 11:42 AM
Anyone that pays $400 for a PS3 over an Xbox 360 is a little loony.

Motion
11-03-2005, 01:06 PM
Anyone that pays $400 for a PS3 over an Xbox 360 is a little loony.


:confused: Why? If they are the same price, why wouldn't you buy the more powerful machine?

BALLS DEEP
11-03-2005, 02:06 PM
:confused: Why? If they are the same price, why wouldn't you buy the more powerful machine?


So you're saying that the PS3 will be more powerful than the Xbox 360? I doubt that.

However, if it is true, I'd still take the Xbox because it has better games.

More power doesn't mean it plays better or looks better.

I gave my PS2 away when I got my Xbox. I had the DRE's on the thing and it was a pain in the @ss to navigate it's menus.


But, everyone likes different things. That's what makes the world cool.

Caps
11-03-2005, 02:52 PM
So you're saying that the PS3 will be more powerful than the Xbox 360? I doubt that.

However, if it is true, I'd still take the Xbox because it has better games.

More power doesn't mean it plays better or looks better.

I gave my PS2 away when I got my Xbox. I had the DRE's on the thing and it was a pain in the @ss to navigate it's menus.


But, everyone likes different things. That's what makes the world cool.

The PS3 is going to be more powerful than 360, maybe significantly more powerful. And I guess you're big on First Person Shooters if you think Xbox has better games. I like em too but I'll take some MGS and GTA over Halo, but thats just my tastes I guess.

BALLS DEEP
11-03-2005, 03:13 PM
The PS3 is going to be more powerful than 360, maybe significantly more powerful. And I guess you're big on First Person Shooters if you think Xbox has better games. I like em too but I'll take some MGS and GTA over Halo, but thats just my tastes I guess.


Nope dude. I actually almost exclusively play football games. I have GTA and Halo and Splinter Cell too. But, my attention spanf or any non-sports game is rather limited. Once I get stuck I just get p!ssed. I tried some Tom Clancy rainbow Six game and couldn't even clear the first level.

I just like the functionality of the X. It seems to get the best version of all the games. I do miss MGS though.

Caps
11-03-2005, 03:52 PM
Nope dude. I actually almost exclusively play football games. I have GTA and Halo and Splinter Cell too. But, my attention spanf or any non-sports game is rather limited. Once I get stuck I just get p!ssed. I tried some Tom Clancy rainbow Six game and couldn't even clear the first level.

I just like the functionality of the X. It seems to get the best version of all the games. I do miss MGS though.

Thats because it's the most powerful of the 3 current consoles.

Motion
11-04-2005, 11:20 AM
So you're saying that the PS3 will be more powerful than the Xbox 360? I doubt that.

Yes I am. Its been made public for months. No debate about it.

Amars
11-04-2005, 03:04 PM
This is going to be war between these 2 companies.

Agent51
11-04-2005, 03:27 PM
I have been a longtime Playstation guy even though I own and XBox too. I will prolly eventually get both, but I know for sure I'll be getting the PS3 on its release, I'll prolly wait til after that to buy my 360. I'm not even sure why I own an XBox, 98% of the games I play are sports games, be it traditional ones like football or hockey or "extreme" ones like Tony Hawks etc etc. I HATE football games on XBox, the cotrols piss me off to no end, I never touch sports games on the box, except for EA's Fight Night round 2, but that was mainly cuz when it came out I had no room on my PS2 memory card and didn't feel like buying a new one, lol. I do play the GTAs though, and a few racing titles. I own Need for Speed Underground 2 on the PS2 and Midnight Club 3 on the XBox, again cuz of the memory card thing. WHile I have absolutely no doubt in my mind that PS# will be an awesome system, and I will liek it more than the XBox 360, I pray to GOD they change that controller, the pictures of that thing are hideous, it looks like a damn boomerang. Hopefully either the picture is just concept art or the pictures do it no justice or something, because it looks horrid. It looks 97 times the size of the original XBox controller. I'm hoping the longer "arms" on it in REAL life just go like a little past your palms or something, cuz the arms on the current PS controller are a tad bit short, even though it's still comfortable, but the pictures of it make it look like the arms will go all the way down my damn forearm!

unifiedtheory
11-04-2005, 11:40 PM
I'll buy the PS3 when it comes out for sure, I'm just a Playstation guy I guess.

XBOX controllers irritate me to no end. From what I've read the PS3 will be a better machine anyway. I only play sports games so it is the PS3 for me all the way.

Plus...I'm trying to ween Bill Gates out of my life as much as I can so I'll pass on giving him any more of my loot.

QB2RonnieTD23
11-05-2005, 09:15 AM
$399 is a lot cheaper than i expected. I'm not an expert on video games but i do play Madden for PS2 and i was interested in getting PS3 but people were telling me outrageous prices like 450 dollars or 500 dollars and i was turned off. 399 is not as bad as i expected and i may considering buying it whenever the hell it comes out.

Motion
11-07-2005, 03:28 PM
Further evidence the PS3 will be the same price as XBox 360, however looks like it might not be out til LATE 2006 :(

http://www.gamasutra.com/php-bin/news_index.php?story=7086

Deus Ex Dolphin
11-08-2005, 03:59 AM
I bet Sony is lying about the March 2006 launch in Japan, more like Summer or Fall then MAYBE Winter 2006 in North America. Sony can't admit the PS3 is about a year away since that would fuel sales of the Xbox 360 as impatient gamers don't want to wait that long.

I'd bet it is $400 for a "basic" PS3, with no hard drive, HDTV cables, remote, etc. Rumors are that the PS3 has had heating issues and Sony is way behind in the production schedule. Who knows? Time will tell. I'll be glad to admit I was wrong if Sony does indeed have a Spring PS3 launch, even just in Japan. :D

Imagine if the PS3 is delayed until 2007 though: :eek:

http://www.news0r.com/index.php?p=2718

Slappy8800
11-09-2005, 09:51 AM
i think the blu ray technology alone costs more than 399....

FuturePhin
11-10-2005, 05:17 PM
I think the price will have to be less. The 360 I just seen in an ad I got in the paper is going for $299..and with a mess of other stuff for $399.

Caps
11-10-2005, 05:48 PM
I think the price will have to be less. The 360 I just seen in an ad I got in the paper is going for $299..and with a mess of other stuff for $399.

The cheap version is crap though. I'll give you the rundown on it if you want me to but you might as well just go to ign or gamespot and see for yourself.

AquaInferno
11-10-2005, 08:30 PM
I didn't read most of the posts, but I wanna post something heplful, sorry if it's in here already:

Basically Sony's console is going to be expensive partly due to the Blu-Ray fomat its going to be using. Now this Blu-Ray could be a great thing for it's price. Since Blu-ray KILLS DVD in capacity PS3 owners could wind up getting the same game with more cutscenes bigger soundtrack etc. Now this is personal speculation but I know for sure they will be using Blu-Ray. Sony has their hands VERY dirty in this Blu-Ray project and personally I'm very excited about it. Hopefully Metal Gear Solid 4 blows everyone's minds away and we'll see what I'm tryin to say about Blu-Ray's massive capacity.

On the flipside MS may, and I stress MAY use HD-DVD, however it is no where near capacity of a Blu-Ray disc, and I feel that Blu-Ray can really make the PS3 console, the averagejoe won't realize this but he'll say "The PS3 version has way more stuff!"

Deus Ex Dolphin
11-10-2005, 10:03 PM
Well, how about not being able to use any USED or BORROWED games on your PS3 system? Sound good, Sony fans? :confused:

http://www.gamespot.com/news/show_blog_entry.php?topic_id=23921409


Sony has not DENIED the rumor, but frankly they would be INSANE to try this. You destroy the rental market, so the video places will push the Xbox 360 and Nintendo Revolution instead of the PS3. Imagine getting a favorite game disk scratched and being FORCED to spend FULL PRICE for another copy (instead of a cheap used copy).

FinsNCanes
11-10-2005, 10:18 PM
So you're saying that the PS3 will be more powerful than the Xbox 360? I doubt that.

However, if it is true, I'd still take the Xbox because it has better games.

More power doesn't mean it plays better or looks better.

I gave my PS2 away when I got my Xbox. I had the DRE's on the thing and it was a pain in the @ss to navigate it's menus.


But, everyone likes different things. That's what makes the world cool.

What up again BALLS? By the way..you are crazy. PS2 has way better games then XBOX.

AquaInferno
11-10-2005, 10:18 PM
Well, how about not being able to use any USED or BORROWED games on your PS3 system? Sound good, Sony fans? :confused:

http://www.gamespot.com/news/show_blog_entry.php?topic_id=23921409


Sony has not DENIED the rumor, but frankly they would be INSANE to try this. You destroy the rental market, so the video places will push the Xbox 360 and Nintendo Revolution instead of the PS3. Imagine getting a favorite game disk scratched and being FORCED to spend FULL PRICE for another copy (instead of a cheap used copy).

I read a rumor a while ago there was gonna be a DBZ vs Capcom. Never came out, there's 1,000,001 game industry rumors with most of them being false. Even if this comes out, have you ever heard of a Modchip? Also it has one big hole in it that I found. So my friends PS3 has his game and the console says ok this is the game, registers it or whatever, but I betcha it can't write any data to the cd. Meaning that the cd won't know it's been payed in another machine. Sounds bogus to me.

Caps
11-10-2005, 10:35 PM
Well, how about not being able to use any USED or BORROWED games on your PS3 system? Sound good, Sony fans? :confused:

http://www.gamespot.com/news/show_blog_entry.php?topic_id=23921409


Sony has not DENIED the rumor, but frankly they would be INSANE to try this. You destroy the rental market, so the video places will push the Xbox 360 and Nintendo Revolution instead of the PS3. Imagine getting a favorite game disk scratched and being FORCED to spend FULL PRICE for another copy (instead of a cheap used copy).

First of all, Sony, Microsoft, and Nintendo NEVER deny or confirm rumors of any kind. Second of all Sony won't do this, because they aren't stupid. This wouldn't benefit them in such a way that it would offset the negative backlash they would get. Other than that, AquaInferno made a good point as well.

Deus Ex Dolphin
11-11-2005, 12:11 AM
Lots of rumors at this point, though this has some validity since Sony has applied for a patent, right?

Second, the average person won't ever bother with a modchip. I've got a friend with a fried PS2 who thought he could install a modchip himself. The warranty is void the instant you take your console apart.

Third, although not given DETAILS on how this security works, it seems that the disk is INDEED "marked" in some fashion by the console it is first used in. That is the whole point of what Sony is working on here, to prevent the disk from being used in another PS3.

Fourth, I agree that Sony would be greedy and stupid in equal measure to think they can force gamers to buy ONLY new games. Guess what? Companies make BAD business decisions all the time. Sony is looking at all the money used games make, and want a way to profit themselves, or destroy the used game market altogether for the PS3.

Having written all the above, I agree that Sony probably won't try this. Backlash indeed. :yell:

FuturePhin
11-11-2005, 02:03 AM
The cheap version is crap though. I'll give you the rundown on it if you want me to but you might as well just go to ign or gamespot and see for yourself.


What do you mean by cheap version? 360 has a cheap version? The numbers I gave were with extras for $399 and the base model for $299. Got me curious!

Caps
11-11-2005, 05:26 PM
What do you mean by cheap version? 360 has a cheap version? The numbers I gave were with extras for $399 and the base model for $299. Got me curious!

You know what I mean. Cheaper version.