> -----Original Message----- > From: Greg Morphis [mailto:[EMAIL PROTECTED] > Sent: Tuesday, May 17, 2005 12:49 PM > To: CF-Community > Subject: Re: Sony PS3 to have backward compatibility goodness > > Surely they're not going to sell this for only 300 bucks! I'm curious > as to what the price will be when it comes out. 500? It just seems > that the hardware would cost more than 300 bucks.
Well - most consoles lose money (or, at best, break even) at launch. I think Sony will match MS's price at launch no matter what that is. They'll need to squash any lead MS might get early in the game. Right now the Sony Games division has a HUGE war chest. The PS2 costs less than half what the Xbox costs to produce but its still selling very well - they've been making a hardware profit on the PS2 for many years now (they sold it at a loss in the beginning). Now MS, being first out of the gate, can play with the numbers more. They might have a launch price of, say, $400. This price is too high for mass appeal but will still generate hardcore sales. They can then happily drop the price to $300 before the PS3 launch to take some wind out of Sony's sales. They might go even lower in an attempt to force Sony to match them. Both companies have the resources to sell these consoles at a loss for years and years. They know the real money is in licensing and subscriptions. It's also not clear which console will cost more to produce. MS has already said that the 360 would include the hard drive, for example, but Sony hasn't made it clear whether it will be pack in or extra. Is the Cell processor cheaper or more expensive than the three PowerPC chips in the 360? In any case I would expect the production costs of the PS3 and 360 to be similar. It will be one hell of a year! Jim Davis ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Find out how CFTicket can increase your company's customer support efficiency by 100% http://www.houseoffusion.com/banners/view.cfm?bannerid=49 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:157928 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
