PS3's manufacturing costs may cause shortages

Nick Doerr
N. Doerr|07.03.06

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PS3's manufacturing costs may cause shortages
PS3's manufacturing costs may cause shortages
Analyst P.J. McNealy recently talked about the Playstation 3 at an MI6 luncheon. Relating how the PS3 is more than a simple gaming console, he speaks of the complexity of building the physical unit itself. Sony's latest device will use an astounding number of parts, far more than the XBox360 (weighing in at approximately 10 lbs, there had better be a lot of parts -- useful ones, at that). This massive number of pieces to, well, piece together the system, may cause a shortage for the remainder of 2006.

Sony is estimated to go into production of the physical units near the end of July, but if it is as complex as McNealy says, will that be enough time to hit their estimated 1 million units per month after release? Even if not, McNealy assures us that the PS3 will be in a nice stride in 2007, however, "the wild-card becomes, [whether or not] people still want to spend six-hundred bucks on the box."

Price really is becoming the most important aspect this generation! Since the PS3 is so expensive, perhaps a shortage would be a blessing in disguise. Should sales numbers not perform as expected -- this may result in minimal losses to Sony and a slower, more steady approach to the market as the so-called future-proof console. Wild-card, indeed.
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