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#1 |
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Posts: 8,795
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PS3 to cost up to $700 possibly
From gamespot.com
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 And shepherds we shall be, for thee my lord for thee. Power hath decended forth from thy hand so our feet may swiftly carry out thy command. And we shall flow a river forth to thee and teeming with souls shall it ever be. In nomine Patris, et Filii, et Spiritus Sancti. |
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#2 |
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Angel Headed Hipster
Posts: 37,942
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I'd say $500 is more likely. (That's like $600 cdn, tho
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#3 |
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feel the madness
Posts: 11,360
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I wouldn't probably be getting one at launch. I doubt I'd wait long enough to see a price drop but what I'm saying is I could save that kind of cash in that time frame.
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#4 |
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wekasauce
Posts: 106,935
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What's Revolution gonna run for?
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#5 |
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Posts: 21,603
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I'll probably just split the cost with my cousin/roomate. Still a pretty penny even then tho.
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#6 |
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feel the madness
Posts: 11,360
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The thing that gets me, if I get a PS3 I'm going to want a very nice TV to fully take advantage of the high definition. So I'm going to need to probably save up around 2K all told after games and shit.
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#7 | |
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Raw Video Footage
Posts: 45,951
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#8 | |
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King of Love and Piss
Posts: 62,993
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Raw Video Footage
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#10 |
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feel the madness
Posts: 11,360
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#11 |
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I have no gimmick
Posts: 1,088
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Revolution will be dirt cheap apparently, hopefully there will be more consoles released than the X-Box 360 launch.
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#12 | |
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The Satanic Mechanic
Posts: 52,521
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That PS3 price is pretty ridiculous. I won't be getting one for a good while if that's the case. Since the hard drive's optional, why not make the Blu-ray capability optionional to shave some of that price down to a reasonable range? I don't know if that's feasible or not, but it's a crazy price for something that may very well go the way of the laser disc if people support that red ray as the standard instead. |
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#13 |
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Ron Paul 4 EVA
Posts: 152,467
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It's not feasible to make it optional.
With a 2007 release date, I severely doubt a 900 buck price tag, a 700 buck price tag, etc. Whatever the price though, they have to be retarded to think that throwing that much technology into a box will be a viable choice. Now if Nintendo gets their heads out of their asses, maybe they can actually pull ahead. |
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#14 |
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All That Jazz
Posts: 3,310
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There's no way that the PS3 can cost that much, no matter how much that Blue Ray Technology is.
I mean, there's a WAY, sure, it's possible. But they'd have to be really, really stupid to do that. Microsoft has lost this console war so far, so we're left to see whether Nintendo or Sony can capitalize. STAY TUNED. |
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#15 |
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Fthagn?
Posts: 10,042
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That would cost one hundred more than my car. Fuck that.
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#16 |
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look at that hat
Posts: 4,520
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It's not going to be that high but I would probably pay near that for it.
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#17 |
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The Greatness That Is Me
Posts: 3,593
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IM SOLD.
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#18 | |
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Franchise of TPWW
Posts: 15,458
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#19 |
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Ron Paul 4 EVA
Posts: 152,467
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GAH! If it's 450, I'm not gonna bother.
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#20 |
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Formerly Ġohâń3k
Posts: 5,009
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...i spent $600 on my Ex's sweet 16...
could have saved that damn money for a revolution ![]() oh well, 450 isn't TOO bad |
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#21 |
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Ron Paul 4 EVA
Posts: 152,467
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God, are you still on about it?
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#22 |
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Posts: 21,603
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LOL Does time really heal all wounds?
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#23 |
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Jamiroquai Bodega
Posts: 18,627
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I've heard Revolution could sell as low as $99, but most likely $149
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#24 |
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Jamiroquai Bodega
Posts: 18,627
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And Kalyx triad is a terrible poster. Seriously what the fuck?
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#25 | |
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Raw Video Footage
Posts: 45,951
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#26 | |
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Formerly Ġohâń3k
Posts: 5,009
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#27 |
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The Satanic Mechanic
Posts: 52,521
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I thought that said diaper.
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#28 |
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Posts: 19,301
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Sober up Mr. Fly. No drinking and driving.
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#29 | |
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Has an evil monkey...
Posts: 7,299
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#30 |
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Posts: 2,540
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700 bucks? Damn...
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#31 |
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I'm all there is
Posts: 31,811
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lol fuck that
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#32 | |
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Ron Paul 4 EVA
Posts: 152,467
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#33 |
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Forever
Posts: 23,561
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Yeah seriously you pussy.
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