PlayStation 3 costs $800, sez Merrill Lynch mob
If there are some people out there right
now who are in the know when it comes to what the hell is going on -- we mean really going on -- with Sony,
it's those investment firms. But even barring their research analysts getting all kinds of privvy information from
direct executive input or connections on the supply side, it's kind of funny when one of these investment firms lets
loose some juicy gossip. Like that Sony's albatross PlayStation 3 is going to cost them $800 per unit at launch
(they list $900, but apparently Lynch financial analysts can't add their own totals). $800 per unit? Doesn't sound
unreasonable considering what Sony's trying to get under cram under the hood of this thing; Lynch calls it an
"expensive and difficult-to-manufacture product" because of the Cell processor and Blu-ray drive, which
account for the lion's share of the backend parts costs (see above). Granted, most of this analysis comes off as
estimation and prediction, but we'd like to make a prediction of our own: the PS3? She's like Kutaragi's Spruce Goose. Oh she'll fly alright, but at what
cost?
P.S. It's worth a reminder that game companies always sell these things at a loss at launch, so we shouldn't have to worry too much about ponying up about a grand for a PS3. Eh, maybe only six or seven hundred.
[Warning: PDF link]
P.S. It's worth a reminder that game companies always sell these things at a loss at launch, so we shouldn't have to worry too much about ponying up about a grand for a PS3. Eh, maybe only six or seven hundred.
[Warning: PDF link]























screw ps3- I just want Halo.
@ 77/Jason: You obviously missed the simple point. PC offers better graphics, PERIOD; however you have the console fanboys that swear their little mini computer can compete.
btw, consoles don't work everytime, Sony's PS2 is a testament to that.
I would love to get one for free :) But the old PS2 still works like a champ.
Those numbers are too high. One it's high for a 3.2GHz Cell Processor to general market, let alone it's way too high for volume purchases of the processor, and especially since it was a Sony, Toshiba, IBM collaboration in developing the product.
The BR drive price is laughable as was pointed out. Even if they sold the PS3 at a loss (which is likely) the licessing fees on games is where the money is.
Did, I just say that? I'd say I'm anti-Sony in general but when people push BS like this, I'll still respond.
TAZ
According to Merrill Lynch in Japan (published today), the PS3 could be delayed 6 months to a year
http://news.com.com/PlayStation+3+may+be+delayed+a+year/2100-1043_3-6041327.html?tag=nefd.top
Whatever, I'm just gonna buy one, then sell it on eBay for $1000 when Sony gets a "shortage," and some kid is willing to pay $200 extra to get it on time for his birthday :)
this is quite funny when everyones running around worrying about a pricetag..... the only people that know when its coming and how much this console is gonna be when it comes out is SONY. realistically every single console there ever was IS overpriced at launch since dot.. and i dont think their are gonna ruin their reputation for their best selling product overall(it makes sense)
Is this a joke? M-L people think that Sony will pay that much for components? All their estimations are wrong!!! Please re-educate yourselves, M-L employees!!!
It's funny how half the people here are plain idiots. The reason why it says $900 is because of the Hard Drive. If you look carefully, the price for HDD is NA which means they don't know yet. That's why it says $900 because they're assumming it's going to cost around $100.
Let's not be naive about who feeds Merrill Lynch. For example, Microsoft has a long-term relationship with Merrill Lynch. See for example>
http://www.microsoft.com/business/executivecircle/content/casestudydetail.aspx?csID=15488
Don't be the least surprised that some of the Merrill Lynch information was feed from sources keen to hurt Sony. Yes, in some areas Sony deserves to be corrected ---- like maybe -- music CDs and rootkits.
However, this Merrill Lynch report smells like FUD that has been stoked by a mean and nasty competitor. Now does anyone know of a Sony competitor that might engage in tactics designed to maliciously hurt its main competitor, perhaps someone with a long history of anti-competitive behavior?
btw, thus far Sony have handled this very poorly ---- clearly Sony doesn't understand how important it is to Microsoft's long-term consumer strategy (audio, video, mobile, voice) that they crush Sony.
I seriously doubt that they would charge $800 to the consumer. The breakdown was for the cost of making the PS3 which is most likely similar to the XBOX 360 since Microsoft is loosing money on their consoles. I would think that the price of the PS3 would be at least somewhat competitive with the 360, maybe slightly more because it has built in wi fi whereas Microsoft does not.
"I own a 360 and will buy the PS3, looking at those specs, the Xbox 360 I have does not have built in Wi-Fi or blueray so that alone the PS3 is much better (but at what cost to us)."
Wifi and Bluray make a console? Are you kidding? Wireless is unreliable for networking. If you think it is so important, then buy the adapter for the 360.
Bluray may not even be the winner of the supposedly important format wars. The first set of games isn't likely to even be on Bluray format. Most games don't even fill up a DVD9. Not to mention that the manufacturing plants may not even be ready for Bluray disc production.
Sony media formats have not had good luck to date either. Why would Bluray change the tide?
I plan on getting a PS3, but I'm in no hurry. Let the typical Sony hype pass and go, and then see what is ACTUALLY left.
The Revolution and PS3 have one thing up on the Xbox 360, and that unrealistic hopes and speculation from consumers. I support Nintendo, as they are usually true to their word. Sony on the other hand needs stickers that say, "Powered by Hype."
Some people just didn't read this article. The reason it adds up to $800 and not $900 is because they didnt include the $100 hard drive in that figure. A recent Sony website showed the hard drive as optional so they removed it from the list. Come on guys...I thought Engadget readers were smart. READ the page before posting stuff like "Merrill Lynch has top-notch adding skills." Its clear that you're the one with the adding problem (or at least reading problem).
Who in the hell would pay that much for one of these when you can get them for free at http://www.Squidoo.com/Get_It_Free
Who in the hell would pay that much for one of these when you can get them for free at http://www.Squidoo.com/Get_It_Free
Hmm, that's funny, because I have mine preordered and paid for. $399 guys. And to let it out a bit more, Sony allready has almost 200,000 units made and ready for sale..... so there goes the spring 2007 release.
And here I was thinking I would be able to afford a PS3.
ha ha I love the xbox 360 and now I can say, yeah shure the ps3 might be a little better but it will cost TWICE AS MUCH @ LEAST!!!!
HA HA HA HA Ha
Who cares how much they lose on the console. These companies make money in the games which they make for $2 and sell for $60. Most people with playstations have at least 10 games over a couple years.
FYI comparing xbox360 to the PS3 is no better than comparing Sega Dreamcast to the PS2. Most 360 players are most likely using a Sony TV to play it on also.
Think of it this way: how many of you jerks bought a high-end computer simply to play games? This is the same thing. Think of it as a high-end computer w/o a monitor.
Maybe they'll start a Sony credit card and payment-plan for us poorer folk.
hmmm some ps3 fansites somehow got it in their heads
it will only costs 300$. I guess If you assume as a buisiness that everyone that gets one will blow several hundreds of dollars on games and accessories
within the first 3 months of purchase.
I would put my money on 499-599$
In response to those who say the PS3 will look so much better... One itsy bitsy problem. The xbox360 maxes out the current abilities of tv graphics for DLP 1080i and 1080p tvs, much less plasma screens. Until they make better TV's, the PS3 has a bunch of crap that can't even be used. HD DVD has a much higher probability of selling than Blu Ray, and therefore the PS3 might actually be MORE expensive than what they are thinking. People have to BUY things for them to become cheaper. And guess what? I've had an Xbox360 for half a year now, and will be getting a PS3.
I didn't believe the xbox could beat the ps2, then i bought one. It did. I didn't think the 360 would be NEARLY as good as it is. I thought it'd be a slightly suped up xbox. Instead, I get amazing graphics, games, and immediate game play. That's right kids, you get free arcade games, movies, trailors, and connectivity straight out of the box. all for 400 bux. I got money on the PS3 being 500. They keep saying 3-400 USD. I'll believe it when I see it.
People, the first column may add up to $800 but you must consider that Sony has to make a profit.
sony doesnt have to make a profit from the PS3 itself but considering the games are selling at 50-60 each its not too hard to make a profit, considering most casual gamers buy at least 5 games and others get more
I can't wait to see what PS3 1080p looks like on my 55" SED TV.
Well, Whose with me to grab one of these outta peoples hands when they just come outta the store?
http://www.laptopbatteryclub.com/
people plz dont think im a dumb ass i just want to understand the things the ps3 has....what is al of this???
S-Video and HDMI
Blu-Ray
ethernet port and Wifi
USB ports
Bluetooth devices support
Web browsing
Hard Drive (upgradable)
SD memory card reader
Homebrew support
Linux
Better online service (hopefuly)
a little better graphics and HD content*
oh and i forgot the extra controllers, the online services, the w/e else they convince you to buy