Sony Playstation 3: Rumors say Sony might lose USD 100 on each unit
July 4th, 2005 Leave a comment Visited 64 times, 1 so far today
Sony Playstation 3: Rumors say Sony might lose USD 100 on each unit
Merrill Lynch Japan has suggested after a study that the Sony PlayStation 3 might cost as much as USD 490 to the entertainment giant Sony. And the rumored reported price that the company is planning to charge for each unit is around USD 399. This means that Sony might be absorbing as much as USD 100 on each unit shipped of the upcoming Sony PlayStation 3.
The expected sale of this next generation gaming device from Sony would result in potentially a USD 1.18 billion loss for the company in the first year itself. Merrill Lynch has taken into consideration expected prices of the Blu-Ray drive, Cell chip, and RSX graphics processor at around USD 101. The rest of the components and packaging would cover up the rest of the expected price.
It is not new for gaming companies to make a loss on the gaming unit shipped to the market. They make their profits on the accessories and software supplied on a later stage. The problem with Sony in this particular case is that it is still going to be at least around USD 100 expensive when compared to its prime competitor Microsoft Xbox 360 which is expected to be priced at USD 299.
Add to it the fact that Microsoft would be launching their Xbox 360 later this year itself, which is around 6-7 months before the probable launching date of the Sony PlayStation 3… Sony might have a problem. Moreover, Microsoft has got such a financial position that they can play the price game and force Sony to make further losses on their gaming console by announcing further price cuts. It might take more than a couple of years for Sony to make their PS3 profitable. In comparison, PS2 was profitable in its second year of running itself.
All these estimated prices are of course not official and Sony would definitely have their figures straightened out to face the competition from Microsoft. However, one thing is for certain… They seem to be taking the shape of an underdog in the battle of the next generation gaming consoles.
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July 9th, 2005 at 03:32 am
I wuold just like to say how dunny it is that everyone is speculating things that are about one year away. I guess in the end it is good because it gives writers a reson to have jobs. What I do want everyone to remember is that all the prices are al speculative and the truth is that no one really knows how much the systems are going to cost. Does anyone remeber the PSP and how all these analyst were speculating that the PSP was going to cost $400-$500. This type of speculation happens every time that a system was going to come out. And look the PSP was only $249. I think that reports like these should only be made only after official prices have been released. Peace out!!!
Hi Adi!!!
carlosc1dbz
August 22nd, 2005 at 04:05 am
how much is the playstation 3 in Canada?
August 22nd, 2005 at 04:06 am
how much is the playstation 3 in Canada?
April 17th, 2006 at 05:16 am
microsoft can play with the prices… or is it cuz no one is buying it… i know the majority of the ppl where i live are not interested in microsofts 360 but are more entusiatic about the revolution and sony’s ps3. and everyone’s been saving up since E3 for both consoles. i doubt sony will make a move to lose money and well mircosoft can hope that more ppl buy its products cuz no one here would buy it even if the price was reduces to $150