West Coast Connection Forum
Lifestyle => Sports & Entertainment => Topic started by: Trauma-san on February 21, 2006, 02:42:06 PM
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700 dollar price tag for a system only marginally more powerful than the Xbox 360, which is also overpriced. Hard to develop for, plus it's likely getting released AFTER the Nintendo Revolution which is slated for fall. Sony's really shooting themselves in the foot on this one.
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http://www.gamespot.com/news/6144600.html
PS3 launch, price doubts batter Sony stock
Share price sinks 3.6 percent on predictions of $900-per-console manufacturing cost, spring 2007 US launch; contradictory corporate statements follow.
Across the United States, most Americans were relaxing this Monday, courtesy of the long Presidents' Day holiday weekend. Not so across the Pacific in the corporate offices of Sony. The electronics and entertainment giant saw its stock price sink 3.6 percent, dropping to 5,300 yen ($45) per share. The fall affected the entire Tokyo stock market, with the Nikkei index dropping 1.75 percent to 15,437.93 yen ($130.57).
Monday's drop follows a 2.8 percent decline in Sony stock on Friday, after Wall Street stock-brokerage firm Merrill Lynch published a report skeptical of the company's next-generation console plans. It predicted that the launch of the PlayStation 3 console could be delayed by 6 to 12 months from its current spring 2006 window, resulting in an autumn launch in Japan and a late-2006 or early-2007 launch in the US.
"We wrote last November that Sony’s design choices for the PS3 had resulted in an expensive and difficult-to-manufacture product," read the report, "and we think that we're seeing the consequences of those choices play out now. In particular, we think the problem points are the Sony Cell processor and the Blu-ray drive." Merrill Lynch also cited heat-generation issues with PS3 hardware and the far-from-finished state of most games for the platform as factors.
While other analysts have predicted that the PS3 might not hit North America until Q4 2006 or Q1 2007--which would miss the all-important holiday shopping season--Merrill Lynch's stature made many a trader skittish. The fires of unease were fueled further by another component of the report, which predicted that the manufacturing cost of the console could be much higher than previous estimates of around $500 per unit.
"Our updated analysis indicates that the initial bill of [production] materials for PS3 could approach $900," read the report. The report said that the production cost of a single Cell processor will be $230 at launch, with the Blu-ray drive setting Sony back $350 per unit. However, the $900 price tag presumably includes a $100 optional hard drive, as a breakdown of component costs in the report totals just $795.
If the $900 estimate is correct, that means the PS3 would have to sell for around $775-$800 to maintain a $100-$125 per-unit loss similar to that of Microsoft's Xbox 360. If the $795 estimate is correct, the console could sell for around $699--within the range recently forecast by a group of analysts and developers polled by CNN/Money.
Merrill Lynch expects that PS3 production costs will start falling after 2007, when Sony can shift the Cell chip's manufacture from the complex 90nm process to the more cost-effective 65mn process. Scaling Blu-ray to other devices will also bring down the drive's price. Merrill Lynch predicts that the PS3's production cost will fall to $320 in the three years after its launch, by which time the Cell will cost only $60 per unit and the Blu-ray drive only $100 per unit.
In the wake of the report, Sony issued a series of contradictory statements. In Japan, Sony Computer Entertainment spokesperson Kei Sakaguchi flatly denied that there would be any delay to Bloomberg News and other press outlets, saying, "There isn't any change in our plan to release the console in spring 2006."
However, a Sony Computer Entertainment America spokesperson was more cautious when she spoke with USA Today. "We're aiming for spring, but we haven't announced specific regions," she told the daily broadsheet. "We're waiting for [final PS3 specifications] until the last possible minute, but the launch could be pushed back if they're not decided soon."
By Tor Thorsen, Hirohiko Niizumi -- GameSpot
Posted Feb 20, 2006 1:39 pm PT
666 Comments | Post a Comment
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If the $900 estimate is correct, that means the PS3 would have to sell for around $775-$800 to maintain a $100-$125 per-unit loss similar to that of Microsoft's Xbox 360. If the $795 estimate is correct, the console could sell for around $699--within the range recently forecast by a group of analysts and developers polled by CNN/Money.
Fuck that, I ain't planing on buying a PS3 anymore if that's true.
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I ain't buying shit if that's the price.
How is the PSP anyway? Is it worth the price?
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::) It's just these so called experts estimating a price tag. I'm not paying attention to any price tags put on the PS3 until they come out of Sony's mouth.
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LMFAO @ that article. Sony would never sell a console for $700. If anyone believes that they are the king of all dumbasses.
Now, if Revolution gets released before PS3, then Sony will get fucked since Nintendo is offering something 'Revolution'ary (if ya will) while it seems as if Sony is just crapping out just a more refined PS2.
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microsoft are selling the xbox 360 for like $600-700 in australia, sony will do the same thing
these consoles are gonna cost them alot to make. microsoft did the same thing with the first xbox, and they hope that they sell enough games to make money on it rather than people pirating them
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Trauma your assuming all this based on some bullshit info? sony didn't even announce the price for the ps3 yet...and why the fuck would they put a 700 dollar price tag on ps3? sony aint that stupid...
at most, ill bet its gonna be around 500 bucks...even then people are gonna buy it just cuz its SONY...they own the console market and i dont see that changing anytime soon.
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If the $900 estimate is correct, that means the PS3 would have to sell for around $775-$800 to maintain a $100-$125 per-unit loss similar to that of Microsoft's Xbox 360. If the $795 estimate is correct, the console could sell for around $699--within the range recently forecast by a group of analysts and developers polled by CNN/Money.
Fuck that, I ain't planing on buying a PS3 anymore if that's true.
Damn that's alot, fuck it i'll still get it I got 2 jobs I aint even trippin off that.
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wow even if it's 900 i ain't buying one til it's 150 or somethin.....shit i'll wait 4 years i don't care
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Trauma your assuming all this based on some bullshit info? sony didn't even announce the price for the ps3 yet...and why the fuck would they put a 700 dollar price tag on ps3? sony aint that stupid...
at most, ill bet its gonna be around 500 bucks...even then people are gonna buy it just cuz its SONY...they own the console market and i dont see that changing anytime soon.
Bullshit info that I've known for a year now. Since the system was first announced, everyone in the industry has been doing the math and Sony can't build the thing for less than 900 bucks. Now if you think it's a smart business move to sell a system for half of what it costs to build, then that's one thing... but there's no way Sony's gonna survive a 4-500 dollar hit on each system sold. 200 bucks would be more believable. This thing will drop for around 600 bucks, maybe more. In my opinion the 360 is too much to pay for a system, much less what Sony wants.
Sony hasn't made an official annoucement because they don't know how to spin it. It isn't hard to figure out though, the Xbox 360 loses 150 bucks on every system sold, Sony won't allow themselves to lose much more than that.
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^^
Yep, losing $400 on every PS3 would be a suicide.
Of course, they're supposed to make profit by selling games but it'll be really hard to do
unless they rise the licensing fees on games (which would hit developers, who already have to cope with skyrocketing budgets)
or plan to keep PS3 on the market as their main video game system for at least 10 years.
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^ As I predicted long before the 360 came out, the 360 will clearly win the 'console war' this time around, and Sony may even lose 2nd place to Nintendo. Nintendo's Revolution is going to be extremely attractive to gamers, and to developers. First, it'll have a lower price than either competitor's system, 2nd, it'll cost about half as much to develop for, and third, it has a revolutionary control system that will render every Revolution game exclusive to the system. If the Revolution has 1 game you like, you'll have to own a Revolution because it'll be impossible to make the game for either other system without the controller.
Of course you may see Sony or Microsoft copy the controler, just like they copied Nintendo's analog stick for the N64... but the controller is so unique it'll be hard to mimic it without being sued.
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A PS3 cost $900 to make? WTF? That shit better take me to the moon...
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That's the whole problem. It doesn't. Like O has demonstrated with the specs in here before, it's only marginally more powerful than the 360.
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I read in a mag (woz either NUTS or ZOO) that the PS3 woz bout 3 times more powerful than the 360 n that Sony wud definately b sellin em at a loss. But as 4 wen n price, ill guess we'll just hav 2 wait n c wen Sony decide they wanna sell it 2 us!
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^ As I predicted long before the 360 came out, the 360 will clearly win the 'console war' this time around
Then why isn't it selling ??
PS1 & PS2 wrecked shop, and PS3 looks set to do the same.
360 flopped in most major markets in the world, so Sony got good time to prepare the PS3, and Nintendo seems to be aiming at the kids with their dog/pet games and Mario recycling, N64 & Gamecube didn't stand a chance against Sony's machine saleswise, and I doubt Revolution will.
The price doesn't concern me, the only thing that concerns me is Sony's bullshit DRM tendencies, if they're gonna put as much DRM and copy protection into Blu-Ray as some indicate, they can end up shooting theirselves in the foot.
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xbox 360 is flopping cause of the price, the next xbox will be out by the time the xbox360 becomes affordable
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^ The price is definately hurting them, and the price of the Ps3 will hurt Sony even more than it hurt Microsoft. That's my prediction, and I'm sticking to it, from way back last year sometime. Microsoft will whip Sony's ass this time around.
Oh, and btw... "Why aren't they selling"... these are the same systems that you couldn't get your hands on back before Christmas. They are selling.
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I actually wouldnt b surprised if the final price tag is around 700,its got alot of expensive shit inside it
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A PS3 cost $900 to make? WTF? That shit better take me to the moon...
lol
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I read in a mag (woz either NUTS or ZOO) that the PS3 woz bout 3 times more powerful than the 360 n that Sony wud definately b sellin em at a loss. But as 4 wen n price, ill guess we'll just hav 2 wait n c wen Sony decide they wanna sell it 2 us!
lol it wont be 3 times more powerful then the xbox 360
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a new gta will be a good enough reason to buy the ps3
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You'd pay 700 bucks for a system, then 60 dollars for the game, for a new GTA?
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yo anyone gotta pic of the ps3 console and control they can post up? cuz i seen one which was silver and a moon lookin control, looked kinda weak design wise, i mean the playstation always even looked dope visually but if the pic i saw is the truth, then the 360 design is better.........but imma still wait for the ps3, cant see it failing to be honest........nintendo gonna get alot of kids no doubt, 360 got its set to, but ps3 got people of all ages, all markets, its gone be gettin copped by cats who be older, lil kids who get it as a xmas/bday present, and so on........i dont see it fialing but the risk with selling it such high prices is that people will say, they gone wait til price drops, which could result in less sales, but if they counter that with bringing shit out at a "festive period" shit shouldnt be, sony could easily affect 360 sales just off a lil teaser advertisment saying "ps3 coming soon" on tv to let people know its in the works, i know people will wait for a ps3 rather than go out and cop a 360......but when that shit drops, its better be nuts y'all, i aint really convinced anyone knows how good the ps3 will turn out to be from what im reading but the one thing that confuses me is this blu ray shit, what the fuck can i do with blu ray technology?? or what does it do?
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You'd pay 700 bucks for a system, then 60 dollars for the game, for a new GTA?
yes
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did you just make that up xbox 360 is flopping???
i been tryin to cop one now for the past month, calling best buy, target, toys r us etc on the daily, NOBODY GOT IT
they say as soon as a xbox 360 come in, it gets sold right away
im gettin one, because of that xbox live video compatibility feature where you can talk to somebody and see them at the same time while you playing them.. Video conferancing thats hot when i wanna talk to my potnas or family in chicago, ohio
texas etc
what yall dont realize is that, to fully take advantage of the graphics on both of these systems you will NEED an HD t.v.
they pressed the need for these & had one on every booth at the E3 gaming show which i attend every year homies.
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sega genesis >>> super nintendo
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did you just make that up xbox 360 is flopping???
i been tryin to cop one now for the past month, calling best buy, target, toys r us etc on the daily, NOBODY GOT IT
they say as soon as a xbox 360 come in, it gets sold right away
im gettin one, because of that xbox live video compatibility feature where you can talk to somebody and see them at the same time while you playing them.. Video conferancing thats hot when i wanna talk to my potnas or family in chicago, ohio
texas etc
what yall dont realize is that, to fully take advantage of the graphics on both of these systems you will NEED an HD t.v.
they pressed the need for these & had one on every booth at the E3 gaming show which i attend every year homies.
yea the 360s r sold out everywhere here too,but they said the shortage should be over in march so thats not too bad if u havent copped one yet
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If that price is true I'll just wait till it goes down a bit to buy it.. Im gonna buy it at one point or another
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did you just make that up xbox 360 is flopping???
yea the 360s r sold out everywhere here too,but they said the shortage should be over in march so thats not too bad if u havent copped one yet
WTF, it's collecting dust in stores over here..
They created a fake demand for 360 before X-mas by shipping very few units to each store (common tactic for game consoles, making them "exclusive" and raising the price), and the hard drive edition sold out quickly because they supplied only a couple of units to each store, then there was big headlines "sold out", "impossible to get" blah blah, but they suddenly realized they had plenty of core editions, but there was never a rush for them.. now they stocking up with both editions, but it doesn't sell much yet, maybe because there's so few games, and possibly because most people are waiting for PS3, or at least sitting on the fence to see if PS3 outdoes 360.
I could walk into any store and buy both editons of X360, and all the websites I've seen got them in stock, so it must be an American problem.
U.S. is by far X-Box's biggest market, that's maybe why there's a rush for them over there, while the rest of the world awaits PS3.
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sega genesis >>> super nintendo
Dumbest post ever.
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Yeah, the bundled pack's of 360's are sold out but not the Core system.
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sega genesis >>> super nintendo
Dumbest post ever.
genesis = hood
super nintendo = burbs
*goes back to playing streets of rage on og sega genesis console*
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sega genesis >>> super nintendo
Dumbest post ever.
genesis = hood
super nintendo = burbs
*goes back to playing streets of rage on og sega genesis console*
Am from the hood, owned a SNES, Sega went down the shit hole years later.
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sega genesis >>> super nintendo
Dumbest post ever.
genesis = hood
super nintendo = burbs
*goes back to playing streets of rage on og sega genesis console*
Am from the hood, owned a SNES, Sega went down the shit hole years later.
regardless... genesis >>>> super nintendo