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Unread 02-18-2006, 10:51 PM   #1
Mesoian
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PS3 costs $900/unit to build?

WAY higher than I would have assumed...but it's reputible.

Makes me wonder what Sony is planning.

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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.
http://www.engadget.com/media/2006/02/ps3_cost.jpg
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Unread 02-18-2006, 11:39 PM   #2
Rip Van Winkle
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Well, besides the fact that all those supplies there only add up to $800, not $900, like the quote said...that's still kinda crazy. I doubt they'll be put on the market for that much...not many people are going to be ABLE to buy them, let alone be in their right mind to know better.
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Unread 02-19-2006, 12:21 AM   #3
Serria
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..Ouch. I'd have to give up cosplay and conventions for like three years if I wanted to afford that thing.
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Unread 02-19-2006, 02:35 AM   #4
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Wow, we're boned. That means I'll have to give up metrosexuality if I want one.

*Wipes away tear while going through fashion catalouges*

Still, thats the price we're going to have to pay if we ever want to play another Final Fantasy. Oh... wait, we may never see the new Final Fantasy. Pwned.
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Unread 02-19-2006, 03:06 AM   #5
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Erm...has no one paid attention? It costs Sony 800 to BUILD the machine, they aren't SELLING it for that much. Sony has always sold its consoles at a loss.

*
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Unread 02-19-2006, 03:36 AM   #6
Siege
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Sony makes their money off game sales, accessories and repairs. Even business' that sell Playstations make a loss due to trying to stay up to date with the competition anyway.

Either way, it's the consumer that wins... kinda.
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Unread 02-19-2006, 03:48 AM   #7
Mesoian
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But not really.
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Unread 02-19-2006, 04:32 AM   #8
Siege
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Exactly.

Man, us financially destitute really get screwed on this one. And honestly, can anyone be bothered waiting until the prices on the systems goes down?
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Unread 02-19-2006, 05:01 AM   #9
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Marginal unit price goes down as manufacturing volume goes up.
The initial manufacturing cost is SONY's investment to the whole Playstation 3 market profilio project.

It includes higer expected return over the initial investment over a ~10 years period with returns from other developers fees for developing games for PS3, profits from selling games, as well as advertising(or you can say another investment) into the blue ray Vs HD DVD market.

SONY view PS3 as strategic tools to capture a lot of market share in the consumers entertainment sector(Music, HD Movie using Blueray, HDTV, games etc.). So it is a big business, big investment in the PS3 isn't that expensive when you view how much market you can capture.

Microsoft/Nintendo however, are mostly capturing the gaming market. Maybe more Toys for Nintendo. So their investment can't be compared to SONY. SONY owns studios to make movies, music etc. as well.
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Unread 02-19-2006, 12:46 PM   #10
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Irregardless of whether Sony's going to sell this thing for a loss (and if the number's right, they probably will have to), there's a reasonable limit for what the loss might be. If Sony sets the console price below $500, as people think they would be doing, taking these numbers would suggest they're losing a lot more per console than can be reasonably made up through sales of games and accessories. And if they sell the console above $500, they're probably going to have a hard time making people swallow the cost.

I'm still questioning the numbers, though.
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Unread 02-19-2006, 01:25 PM   #11
esantiago7292
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I dunno, I'm not really planning to buy the PS3 because It's defenatly going to cost more then $300 and I don't want to spend that much on a consol and then have to spend 60$+ on 1 game. I don't have that kinda money. It's good that their making better graphics and all but ever game has been done already. As I see it games seen to be getting wores and wores as it goes along.Don't get me wrong their are really good games out there and some pre-veiws look awsome. Graphics have been getting better and thats a good thing but story lines are getting to be the same. For me games are becoming less of a thing for me...
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Unread 02-19-2006, 03:36 PM   #12
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What bugs me is people like myself have to save and save, and then finally we get the PS2 and WAM the PS3 is already rearing it's head. *sobs* I heard my SH5 is going to be on the PS3...It's not fair...I understand why it's so high, but i wish they'd still release some of the new PS3 games out for the PS2, a little lower quality wouldnt bug me.
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Unread 02-19-2006, 03:44 PM   #13
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Quote:
Originally Posted by mechanicdoll
What bugs me is people like myself have to save and save, and then finally we get the PS2 and WAM the PS3 is already rearing it's head. *sobs* I heard my SH5 is going to be on the PS3...It's not fair...I understand why it's so high, but i wish they'd still release some of the new PS3 games out for the PS2, a little lower quality wouldnt bug me.
OMG!! I was that situation too!! For Christmas, my mom asked me if I wanted the PS2..I told her no and told not to get cause the new version would come out soon....then the PSP came out and my mom that was version I wanted so last Christmas she asked my if that was the one I wanted...told that I was waiting for the Blue PSP and the PS3...so now she said that when the consoles that I wanted came, she said she take me to get it since she gets alittle confused when it comes to video games...but I think it's nice how she actually has a small liking towards the video games I play...
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Unread 02-20-2006, 12:22 AM   #14
Mesoian
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Update:

Because the cost is so high, SCEI is now considering delaying the console up to 12 months from it's projected launch. But that's just the kind way of saying that that they will be releasing the system this fall, or at the latest, next spring.
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Unread 02-20-2006, 01:33 AM   #15
Tifa Lin
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WHAT?!?! That's what they keep doing to Advent Children, KH2, and DoC...they just kept getting delayed...I might as well just import everything...
So does that mean that the little competition between Halo 3 and the PS3 in not gonna happen, cause I wanted to know which one would sell more on the same night...
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