More PlayStation 3 info leaked?
By Ryan Block 
posted February 3rd 2006 11:44AM
posted February 3rd 2006 11:44AM
Ok, now we have to admit that we're getting a little skeptical about that PlayStation Magazine Xbox Live-killer
article leak a couple of days go. A second page appears to have made its way onto the PlayStation forums and has some
very interesting details -- if a little disparate, unlikely, and even downright dubious. For example, besides a really
obvious misspelling of "Blue-Ray Disc" in a headline, the article says making the PlayStation 3 a DVR with media PC-like functionality is a
"top priority for Sony" -- even though right now we understand it's only slated to have an optional external
hard drive attachment and doesn't appear to have video inputs. Also, you'll supposedly be able to control your PS3-DVR
with your PSP, send files home to it remotely from your Memory Stick, and that the final hardware kits released to
developers in January were even more powerful than originally anticipated. Wait, there's more: the PS3 will also have
Location Free support and media streaming capabilities to
counter the Xbox 360's Media Extender feature, and that unlike the 360 it'll be able to play back "all major audio
and video formats," including media downloaded from an online service "like the iTunes Music Store." Ok,
look, we're not saying this stuff isn't possible or isn't going to happen, but we do know that typically when you see
leaked stories based on leaded info that spout off with this kind of pie in the sky exuberance and fantastical feature
sets, it's often at least ever-so-slightly exaggerated (or at most an outright fake). We can't say either way, of
course, but we'll supposedly find out this Spring when Sony launches, or at least this Fall when the PSM article quotes
the PlayStation 3 is slated for launch in the US.[Thanks, tehmaz & Mike]
The only advantage over the Xbox 360 is that it'll play all types of media. Unfortunately, I can't see Sony getting away with letting it play Divx, Xvid or any other format that is the pirates favourite.
Just think about this. Every time a single unit of Xbox 360 is sold, MS is losing around $400 because it's costing them estimated $700 to make a premium package.
And Xbox doesn't even have Blu-ray, Cell Processor, blue tooth and any of those goodies Sony is promising to put in PS3.. Just imagine how much it will cost Sony to manufacture that beast when such a comparatively simple Xbox 360 is costing MS over $700.
My guess is it will cost Sony upwards of $1000 to manufacture PS3 and Sony's going to an insane amount of money on each PS3 sold because we all know it'd be a suicide for Sony if PS3's price point is anymore than $500.
So, whatever new feature Sony tacks onto PS3 from now on is just driving the cost like mad, and this is exactly what Sony should avoid. Whether or not Sony has these extra features doesn't really affect most consumer's buying decision as long as Sony can deliever on their promise of mega game franchises like Final Fantasy, Metal Gear Solid series, etc.
Also, whoever dreamed up that article simply doesn't get Sony's paranoia when it comes to media piracy. DIVX and XVID on PS3? Has the author of that article been living under a rock for the last few years???
Sony's behavior in the past shows that Sony wants to be the front runner of Anti-Piracy Crusade.
Sony hated MP3 so much that they developed a proprietary format ATRAC for all their media players. On top of that, MGM Sony's rootkit(DRM) spywhere controversy clearly shows that Sony is not afraid to act on their paranoia. DIVX, the king of movie piracy on PS3?! IN YOUR DREAMS
"My guess is it will cost Sony upwards of $1000 to manufacture PS3 and Sony's going to an insane amount of money on each PS3 sold...."
I think the only insane thing around here is your estimate of the PS3's manufacturing costs.
The $700 rumor for the 360 is unsubstantiated to begin with, and why would the PS3 be $300 more expensive? The Blu-ray is just another optical drive, the cell is just another big CPU (like the triple core CPU in the X360) and the GPU doesn't have 10MB of embedded RAM, unlike the X360. The bluetooth is probably no more expensive that the customized wireless solution MS is using for its controllers.
The big difference is that Sony will manufacture large chunks of the PS3 on its own, so unless you think those extra HDMI and USB ports are going to cost Sony hundreds of dollars (I'm thinking about $5), your estimate is completely baseless.
There seems to be a competition to make the most inane guestimates of the PS3's manufacturing costs and MSRP, and you're currently in the lead.
"MS is losing around $400 because it's costing them estimated $700 to make a premium package."
Oh, and the Premium package sells for $400.
$700-$400 != $400.
Poster #50,
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"Oh, and the Premium package sells for $400.
$700-$400 != $400. "
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have you ever heard of shipping, marketing and retailer cost?
A huge chunk of cash is devoted to shipping and marketing, which cost MS tens of millions or even hundreds of millions dollors.
On top of that retailers that sells Xbox 360 needs make profit from their sales, so MS provides retailers all units at bellow retail price.
So in the end, when a 360 premium is sold for $400, it's actually costing MS $700(manufacturing) + $100(shipping,marketing,retailer cost) = $800 - $400 = $400
And I'm not even factoring in the R&D, defects replacement, insurance, customer support into the whole equation, which would drive up the cost even more.
So, if you look at the whole picture, it's not as simple as tic-tac-toe $700-$400=$300.
The same goes for PS3. It's not going to be just manufacturing cost vs. retail price.
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"The $700 rumor for the 360 is unsubstantiated to begin with, and why would the PS3 be $300 more expensive? The Blu-ray is just another optical drive, the cell is just another big CPU (like the triple core CPU in the X360) and the GPU doesn't have 10MB of embedded RAM, unlike the X360. The bluetooth is probably no more expensive that the customized wireless solution MS is using for its controllers."
"The big difference is that Sony will manufacture large chunks of the PS3 on its own, so unless you think those extra HDMI and USB ports are going to cost Sony hundreds of dollars (I'm thinking about $5), your estimate is completely baseless"
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It's true that $700 is an unsubstantiate number, however, all estimates range from $650 to $740, so I picked the average number, which is probably closer to the real cost. A tripple core system with Xbox 360 premium's feature set at $700 is quite reasonable. Certainly not a major over-estimate.
As for Blu-ray drive, "just another optical drive", you say? Blu-ray is much more expensive to produce than even HD-DVD drive, which in itself is a very costly drive compared to D360's regular DVD drive.
The whole reason behind it is because of much finer point of laser density and very high failure rate that Blu-ray is currently prone to. Comparing Blu-ray to DVD is comparing a Dual-Core P4 3ghz to a P2 400mhz.
MS is hesitant to go even with HD-DVD, which can be manufactured at traditional DVD player factories with very little upgrade and has quite low failiure rate.
Blu-ray, however, needs a fully upgraded facilities with proprietary Sony equipments or even brand new factories dedicated just for Blu-ray production because much of the technology behind BR drives are not compatible with traditional DVD manufacturing methods.
On top of that the imaturity of BR drives are resulted in high failiure rate.
When Sony included DVD drives to PS2, DVDs were already 7 years old technology at the time and have been in the market for 4 years prior to PS2's release, so DVD was not a huge financial gamble because it was already a mutured technology.
On the other hand, Blu-ray hasn't even taken its first step yet. It's only a 2 year old technology without any commercial players on the market.
Yes, Blu-ray will be "just another optical drive" in a few years when it gets broad enough user base in the market, and by then, the manufacturing cost will drop significantly, however, at this very moment, the cost extremely high.
And as for your comment on Cell Processor being a "just another big processor", well, if you think a nine-core CPU is just another CPU, I don't know what to say to you...
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