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PS3 to sell for $399, cost $494 to make

Thursday, Jun. 30 2005 | Author: Scrivs

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Merrill Lynch Japan predicts Sony will lose more than $1 billion on hardware during its next-gen console’s first year on the market–a sum it may not be able to recoup.

According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006.

Merrill Lynch Japan estimates that the machine’s main components–namely its Cell chip, RSX, and BD-ROM drive–will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine’s production cost goes up to 54,000 yen.

Amazing what Microsoft can make you do. If it was just Nintendo in the arena I have no doubts that Sony wouldn’t have a problem selling their console for $499 or up.

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4 Responses for "PS3 to sell for $399, cost $494 to make"

cliche

June 30th, 2005 at 2:50 pm
1

To recap: They make it at $500, sell it at $400, and the total loss is $100 per unit. Simple right? And Sony will kinna float them on the ocean to the US to pay nothing for shipping, and retailers like EB and Best Buy will sell them with no margin(because they’re just nice guys like that). But then again, it doesn’t really matter, because at this point, it’s just a bunch of wild guesses anyway.

I’m guessing that PS3 will cost $450. If I’m right, I’ll be referring back to this post and gloat(Dvorak style). If I’m wrong, who cares?
jerome chandler

November 15th, 2005 at 11:46 am
2

to all of you japanese game makers you all is so stupid to make the ps3 and sell it at a high price.because of this out rage i gaurantee that most people want buy the ps3 because of the price. i think that it should sell about$200 dollars.
il_10

April 20th, 2006 at 8:50 am
3

Before you take any kind of in-depth look a the entire gaming industry, a little forethought (and not to mention some basic grammar and spelling skills) should be taken.
They’re trying to make money in a world in which there’s some pretty heavy competition. The Xbox 360 is selling at a comparable price and they’re losing a comparable amount on each unit as well. If they were to sell the PS3 at $200 dollars, there’s no way they could cram in enough hardware to get a machine that would work well enough to have a chance to compete with the xbox360, even if they marked it down $100 or so from what the build cost was.
Dianne

December 18th, 2006 at 1:25 pm
4

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