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iSuppli estimates the iPhone 3GS costs $179 to make
Did you know that after it is broken down into all of its composite metals and materials and parts, your human body is really only worth about $4.50? Yup, you're cheap in the broadest sense -- all of that oxygen, magnesium, iron, and sodium isn't actually worth all that much in the rare metals market. In fact, according to iSuppli, you're worth way less than the iPhone 3GS -- they looked at the component parts for Apple's new handset, and calculated its raw value at around $178.96. The most expensive components are the 16gb flash memory (ringing in at around $25 per part) and the display (at $19), all the way down to the audio codec board, which Apple reportedly picked up for a cheap $1.15. Of course, there was lots more cheaper stuff (we assume the screws weren't a buck each), but iSuppli didn't actually go that granular. That also doesn't include any of the non-hardware costs: shipping fees, R&D, distribution, marketing, and so on. But it's way more than you're worth, and it's $40 more than the Palm Pre costs to make, too.Lest you start worrying that your spouse will start valuing their iPhone more than your body, however, there is a silver lining. If you break down to the mineral components of the human body, we're cheap, but the actual components of the body are pretty expensive, it turns out. Expensive to the tune of $45 million, if you count up all the money you could pick up from taking out your bone marrow, extracting your DNA, and selling off a lung or two. Just like the iPhone's parts, when assembled, are worth more than iSuppli's $179, you too pick up some value when assembled the right way.[via Engadget]
Palm Pre already torn to shreds, estimated to cost $170
Zero-day teardowns are now a staple of major new product launches, and Rapid Repair is eager to do the deed on the Pre just a few hours after going on sale. Word like "pry," "razor," "spudge," and "difficult" all make appearances in this one, so the long and the short of it is that you don't want to try doing this yourself unless you're a microsurgeon, an electrical engineer, or you have a total commitment and willingness to destroy your brand new Pre in the name of science. Overall, Rapid Repair estimates $170.02 in components -- but as always, this figure doesn't mean a lot since you can't quantify the blood, sweat, tears, and poached engineers from competitors that went into this product over the last several years.
Report: Sony losing about $40 on each PS3
Sony CFO Nobuyuki Oneda noted recently that the PS3's cost is still 10 percent higher than the system's price, reports Andriasang.com. With the console's price differences in each region, if Oneda is talking about Japan, that would be approximately ¥4,000 ($42). In North America the same $40 loss would also hold true.As bad as losing money on each console manufactured sounds, it used to be worse. Just a year ago the estimate was that Sony was losing over $100 per system. Losing a couple Jacksons (four Hideyo's in Japan) per console isn't great, but it appears that Sony's costs and sales on the console are slowly finding equilibrium. Unless, of course, there's another $100 price drop in the PS3's near future.
Palm Pre: $138 to build according to iSuppli
With the economy in the tank (still) and the heat on, cost and profit margins are more important than ever to companies hoping to stave off the inevitable, apocalyptic doom of recession. Well, iSuppli's released an estimated report of how much its costing Palm to cobble together the Pre -- about $138, as it turns out. iSuppli has positively identified just two of the Pre's suppliers thus far -- that Texas Instruments OMAP chip, which runs Palm $11, and Qualcomm's wireless chip -- but they've formed a general picture of what's under the hood for the estimate. That price is about 46 percent of the $300 iSuppli suggests Palm will be charging Sprint for the Pre (a number that's completely unconfirmed at this point). To put it in perspective, the BlackBerry Storm costs about $203 to make and was sold for $199 initially, the G1 clocked in at $144, while the iPhone 3G costs Apple an estimated $174.33. Of course, we have no way of assessing the accuracy of the estimate yet, but if it's in the neighborhood of correct, Palm's profit margin should be pretty healthy.
The Daily Grind: Would a cheaper subscription get you playing more?
Let's face it - things are rough insofar as the general economy goes. People are being much more cautious with their cash, and especially now, they want much more value for their dollar when it comes to entertainment spending. What used to be OK at $15 may no longer be such a good deal, and with more free-to-play games coming all the time, players have a lot more options for entertainment. In the comments for the poll we ran the other morning, there were some who noted that they've kept Lord of the Rings Online accounts in part because they felt it was a good value for an MMO. Others noted that they've switched to free-to-play games like Runes of Magic, or pay-once like Guild Wars to get their gaming on. Beyond that I also know a few parents who have opted to switch to FusionFall for family gaming, since it gives you the ability to have four different accounts for $9.95 a month. With that under consideration, this morning we thought we'd ask you - would a cheaper subscription cost for MMOs across the board (say, all of them drop to the $9.95 model of Lord of the Rings Online - or maybe even offer some lifetime options) get you to play more games - or perhaps jump around and try out other games? Would a cheaper subscription rate bring you back to a game account you may have let lapse due to harder times?
Will mobile carriers charge different rates for data during peak / off-peak times?
Yes friends, your worst nightmare could indeed come true. With companies looking for every last way to nickle and dime their few remaining loyal customers, it's now being suggested that mobile operators could start charging different rates for mobile data depending on the time of day. And, let's face it, it makes total sense in a sick, sadistic way. Reportedly, carriers will soon start having a tough time keeping up with all the data-using cellphone and laptop owners, with the latter crew obviously causing the greatest strain on existing networks. A mocoNews report suggests three main ways of dealing with the uptick in demand: 1) keep building out the network and burning cash, 2) using new technology (read: LTE) with more capacity or 3) create rate plans that discourage usage during peak times. We've always heard that history repeats itself, but we'd be just fine with never hearing the words "peak time" ever again.
Macs still cheaper when you look at TCO
With all of the iPhone news lately, some of you may have worried that we're forgetting what got us here: Apple computers, not the other gadgets and doohickeys they sell. But worry not -- we're still Mac-crazy, which is why we'll still link to a Grade A smackdown on the old argument that Macs are more expensive than PCs. After a few analysts question whether or not Macs are worth it (as if buying a powerful and easy-to-use computer was ever not worth it), MacsimumNews' Dennis Sellers pulls out the big guns, and shows that report after report will make it clear that when you compare the quality vs. cost that you get with an Apple to what you get with a PC, the Mac will almost always win.Sure, if you compare a new MacBook Pro with the bargain laptops you'll find on the shelves at Best Buy, you'll be seeing a smaller charge on your credit card. But when you compare the total cost of ownership due to what's actually in those laptops (and the experience you'll have with each computer), the Mac is cheaper than ever.[via MacBytes]
PS3 costs 53% less to make now than at launch
It's well known that Sony's latest console is a powerful, expensive piece of tech. When Sony launched the PS3, it lost over $200 on every unit sold -- in spite of its $600 price point. However, over time Sony has been able to reduce the costs of manufacturing the system, by removing PS2 compatibility and switching over to a more efficient 65-nanometer chips.iSuppli, the company which broke down the PS3 at launch, estimated the cost of making a PS3 was more than $840. Now, they say the PS3 costs 53% less to make -- at around $445, for a system which sells at $400. Sony is still losing money on each system sold, but in a much less extraordinary way.Not only are the individual components cheaper to make, there are simply less things inside a modern PS3. According to iSuppli, the number of parts inside a PS3 has fallen from 4,048 to only 2,820. Since launch, Sony has reworked the innards of the PS3 to include combined chips. The falling price of components also helps Sony a lot: the Cell processor cost $89 at launch, but now only costs $46 to make.Sony should be able to break even with the PS3 starting in 2009, which makes us wonder if they'll start adopting a more aggressive price strategy late next year. We hope so -- they need a way to make themselves attractive to customers, without breaking the bank.[Via PlayStation Forums]
DS Daily: Right price point?
We've asked this question a long ways back before, but with the busy shopping season on us, and the Black Friday and Cyber Monday shenanigans coming to a close, we felt it was appropriate to ask again. What's the right price for you? Do you pick up games when they first release because you absolutely have to have them, or are you a patient consumer, waiting for that certain title to fall in price before snatching it up. What do you think is the proper entry price point for DS games? We know Square Enix likes to toss that $39.99 price tag on their new games (boo!), but usually it's $30 for non-Nintendo games. Is this the sweet spot?
Guts of BlackBerry Bold found to cost $170
Not that it really matters to consumers one way or another -- after all, if you want a Bold, you'll pay the asking price -- but recent analysis by research firm iSuppli has found that parts and materials used to make the device "cost $158.16, and that assembly and testing add another $11.25, for a total cost of $169.41." Just for comparison, the Curve costs a cool $103 to build, and assuming RIM can sell the Bold to carriers at around $350, it'll net a gross margin of around 45% before R&D costs, software, marketing, shipping and freebies given to obscenely wealthy celebs are taken into account. The report (er, the part about the nice margins) should come as welcome news to shareholders, who have recently been worried that the current economic situation may keep individuals from snatching up new 'Berrys at a breakneck pace. Now, if only RIM / AT&T would let the thing get through testing, we'd be all set to contribute to those margins here in the US. Ahem.
EVE Evolved: The cost of failure
The harsh death penalty in EVE Online is something that's talked about a lot. I even touched on the issue myself when I compared EVE Online's style of PvP to Age of Conan and when I investigated the phenomenon of suicide ganking. In EVE, your ship being destroyed means millions of your hard-earned isk is flushed down the drain. If you're unlucky enough not to get away in your escape pod, you'll be killed and recloned, costing yet more isk and destroying any expensive implants in your head. The brutal death penalty associated with PvP in EVE is responsible for putting a lot of players off playing the game but is the taste of death really as bitter as people make it out to be?In this article, I examine the cost of defeat in PvP and how to minimise these costs without ruining your PvP performance.
EVE Evolved: The cost of failure, part 2
As before, this doesn't hold true in EVE Online, where the quality of equipment is a relatively small factor in the outcome of PvP. The main factor in the outcome of PvP is skill, and not the type on your character sheet. Joining a good player corporation that specialises in PvP and learning from them will provide a bigger boost to your effectiveness in PvP than equipment ever could.
Forum post of the day: No table for you!
There has been much debate over whether mages should always use their Ritual of Refreshment spell in battlegrounds. Shadowavatar of Boulderfist believes that this practice will become even less common because the cost of the spell is slated to increase from two arcane powder to five in Wrath of the Lich King. This brings the total cost of the spell to fifty silver per cast plus requires the use of additional bag space for mages who are not keen on restocking. Withunter of Arathor commented, "At least you know Blizzard is paying close attention to what players complain about. They identify problems with the game, and spare no effort to make them worse." While some posters see this change as a major disservice, some point out that the is really quite justifiable. Darkintent of Bleeding hollow noted that the inflated reagent cost is reflective of the greater benefit of the spell. Many responders indicated that this difference will be negligible due to gold inflation in the next expansion. The amount of space it will take to carry reagents is of a greater concern to many posters.
Phat Loot Phriday: Star's Tears
"Water?" I hear you asking. How could plain old mana water be Phat Loot? But this is no ordinary water, my friends -- it's also known as Cheater's Juice. This, dear readers, is Arena water.Name: Star's Tears (Thottbot, Wowhead)Type: Common ConsumableDamage/Speed: N/AAbilities: Requires level 65. On drinking, restores 7200 mana over 30 seconds. Which isn't that great -- you can get this water from any Mage, right? But this water doesn't come from a Mage, and that's what's so special about it. It's the cheapest vendor water you can buy -- just 25s and two (that's right, two) Honor points per 5, in stacks of 20. Just one BG will earn you enough to not worry about the Honor points, and overall, you'll save money (probably even cheaper than that Mage you're tipping every time you log in) every time you buy it. And, as Arena players all know, this is the only non-Mage water usable in the Arenas. As the tooltip says, it's "carefully extracted for warfare use," so Arena players who can duck out of combat (Hunters, for example, can Feign Death out of combat and drink) can get back some mana fast even without a Mage in the group. Plus, as all Warcraft players (and bloggers) know, tears are the tastiest drink of all. Mmmmm tears. QQ moar pls. How to Get It: This tasty drink is just a vendor away -- you've got to run to the Officer Accessories Quartermaster in each capital city to pick up your couple of stacks. That's Brave Stonehide in Orgrimmar, and Master Sargeant Biggins in Stormwind City. Give them your money and a couple of Honor points, and the drink is yours. Who needs Mages anyway?Getting Rid of It: You could, um, drink it? Otherwise, you can sell it back to the vendor for 1s 25c, which is suprising -- these are the tears of stars, people! Famous people cried their eyes out just so you could have these!
Point/Counterpoint: The worth of Chrono Trigger DS
One of the biggest titles to release on the DS this year is none other than Chrono Trigger DS. But, is it worth the $40 that Square Enix is demanding gamers cough up in order to enjoy this RPG classic on their handheld? The DS Fanboy staff has drawn a line in the sand and been split down the middle, with each side presenting a solid argument that effectively states their case. Instead of letting this get violent and taking it out into the streets, we've decided to turn to our computers and take it out into the virtual streets of the DS Fanboy blog. So, read on and then decide for yourself if Chrono Trigger DS is really worth the price of admission. NEXT >> #ninbutton { border-style: solid; border-color: #000; border-width: 2px; background-color: #BBB; color: #000; text-decoration: none; width: 100px; text-align: center; padding: 2px 2px 2px 2px; margin: 2px 2px 2px 2px; } .buttontext { color: #000; text-decoration: none; font: bold 14pt Helvetica; } #ninbutton:hover { text-decoration: none; color: #BBB; background-color: #000; } %Gallery-27682%
Mythic lets slip the dogs of WAR: Warhammer Online launches Sept. 18th
Electronic Arts and Mythic Entertainment have announced the official launch date for Warhammer Online: September 18th! That goes for the regions of North America, Europe, and Oceania.Additionally, game time pricing has been revealed. In North America, a month-to-month subscription will go for the standard $14.99 per month. Three month and six month plans will be available at $41.97 and $77.94, respectively. For Europe, it'll be one month for 12.99€ (£10.31), three months for 35.97€ (£28.55), and six months for 65.94€ (£52.34).Earlier today, the EA store was updated with an August 23rd date, but that apparently was an error. September 18th is it folks! Get ready for some Realm on Realm action! Check out the full press release behind the jump.
PS3: Sony's $3.32 billion gift to gamers
It's a well-known fact that Sony has been losing a lot of money on the PS3 this generation. Although it's the most expensive console on the market, it's also the most expensive to produce, thanks to the combination of bleeding-edge technologies, Blu-ray and the Cell processor. When the system launched in fiscal 2007, the Japanese electronics giant had to swallow a whopping cost of $2.16 billion. Fiscal 2008, however, has been much kinder to the company, with PS3 hardware costs eating up $1.16 billion, thanks to the lowered cost of manufacturing. Combined, PS3 has cost the company $3.32 billion dollars ... so far.The astronomical figure Sony has invested into the PS3 shows its confidence in its success. However, the company did note that unless it reaches "favorable market penetration," the PS3 would have a "significant negative impact" on the company's profitability.Software is where the company will the company will recoup costs, and with an excellent holiday lineup in store for PS3 gamers, we're sure that Sony has little to worry about for the rest of this generation. But remember, while other companies are eager to make profit off of you on day one, Sony put their necks on the line to give you a great deal on a monstrously powerful system.[Via Joystiq]
Breakfast Topic: The price of flight
As recently reported, Kharmen EU Talnivarr has reportedly paid 20,000 gold for the Amani War Bear. Kharmen reportedly raised the cash for the enormous land epic ride on her which raised questions about how much gold grinding would trigger a gold farming alert. The 20,000 price tag seems pretty outrageous considering I'm still puttering along, like many others, on my regular Windriders on all of my 70s. If the Artisan Riding Skill were important to me, I'd make more of an effort to save the 5,000 gold for the mount, but I find it to be low on my priority list. There is no indication that the cost of epic flight will be reduced in the future.
Cheaper indie Rock Band DLC raised to standard price
Update: It's been brought to our attention that Harmonix originally announced that these songs would be available "for a limited time ... at a special holiday price of $0.99." Joystiq regrets the implication that the price increase was unannounced.Price-conscious and/or pretentious Rock Band fans were understandably giddy when Harmonix decided to release five downloadable indie tracks for the bargain price of 99 cents (or the equivalent number of Microsoft points) in late December. We hope those fans didn't procrastinate, though, because the price for all five tracks has been raised to the more conventional $1.99 as of yesterday.While there was no indication at the outset that the lower price would be in any way temporary, (see above update) The increase has been rumored for a couple of weeks now. When Harmonix announced the Rock Band DLC program they said individual track prices would range anywhere from $0.99 to $2.99, but they also stressed that the "vast majority" of tracks would hit the $1.99 sweet spot.Does this increase mean that future songs are less likely to be released at 99 cents? "I don't think that's necessarily what it means," said a spokesperson for MTV/Harmonix, though he added that future 99 cent releases would probably "be the same situation, with the discounted price for a limited time." We've asked for confirmation of the official policy on this score and will let you know if and when we hear back about it.[Thanks, Keith]
How much is too much? WAR to push the envelope?
When you sit down and look at the costs involved in being an MMO fanatic, the dollars per hour of entertainment ratio is actually pretty good. After an initial down-payment comparable to any other game out, you pay a paltry $15 a month to keep the servers running, keep the developers churning away at new content, and toss a couple bucks at the corporate investors to keep them behind the MMO phenomenon. A whole month's entertainment comes out to be cheaper than a night at the movies, unless you're using a senior citizen's discount. But as good a value as we get, are we poised on the brink of another across-the-board price hike? Keen and Graev make an extremely pertinent observation in TTH's Warhammer Online FAQ. Namely, they're quoting EA Mythic's Mark Jacobs as saying that WAR's subscription fees could quite possibly exceed the $14.99 a month mark.It just has to be EA that's talking about doing this, doesn't it? As much as I try to resist falling into the trap of bashing EA for being a thoughtless corporate machine, they're just always getting themselves into trouble like this. I'm not quite ready to renounce the capitalist system and move to a commune in the jungles of Costa Rica just yet, but they really are making me think about it. What about WAR would justify the increase in costs over the competition? Is it because part of the core demographic actually plays the tabletop game, where you can drop over $70 on a single unpainted pewter miniature? Unlikely. Is it because of the higher cost of oil means that it's harder to fuel the server farms it's going to take to keep a game like WAR going? Not exactly, but closer. Or is it just because they can? Circle takes the square.
