Merrill Lynch: Sony PS3 may be delayed & possibly $900US

19 Feb 06 16:46 by Crabbyappleton in category Uncategorized To news archive

shimman used our news submit to tell us “I thought paying $500 US for the latest graphic card was a crazy idea, but I guess Sony might be thinking $900US console is not a crazy idea but a big idea ;) considering BD players will cost at least $1000US, it might not a bad price to justify for some.”

src="http://www.cdfreaks.com/contentimages/newsimages/1219013507" align=right border=0
>The North American launch of Sony”s much-anticipated PlayStation 3 could be delayed until next year, according to a research report issued by Merrill Lynch. In the report (Click href="http://rsch1.ml.com/9093/24013/ds/276873_0.PDF" target=_new
>here for PDF), the analyst firm proposed the idea that high costs and Sony”s decision to use an “ambitious new processor architecture–the Cell” is making it look like the company might not be able to meet its goal of getting the PS 3 out in the U.S. this year.

They go on to say in the article that it is now clear that the PlayStation 3 will be a very expensive device to manufacture, at least for the initial couple years. They had stated at C|Net last November that the choices Sony had made for this gaming platform, caused it to become difficult and expensive to make. They point to the Sony Cell processor and the Blu-Ray drive as two of the reasons for their statement. They said that the bill of materials for the PS3 was approaching $900 dollars at the onset of production. However, they also predicted that the cost would drop to around $320 dollars in 3 years.

You can check out the story at it’s source- C|Net, by following this link.

Source: C|Net

26 Comments

Hypnosis4U2NV
Posts: 1464
Posted on: 19 Feb 06 17:22
WOW, I have to wonder what the price of the software is going to be when its released? MS increased the XBoX 3 software by $5+ on some titles and its cost was no where near what the PS3 is.. They really are headed for self destruction..
crustyteacup
Posts: 370
Posted on: 19 Feb 06 17:27
at that price maybe they should just stick a hard drive in, mouse, keyboard and tft and call it a pc.
ivid
Posts: 405
Posted on: 19 Feb 06 17:43
For that price it better have a full 3 year warranty and none of this 90 day BS. Both my 360 and PS2 needed to be serviced soon after buying them at release time. In 3 years it would still be over 300 US ?? I guess they expect PS2 to live that long to support the average consumer maket that won't spend even 300 for console let alone 900.
[edited by ivid on 19.02.2006 17:50]
djfunz
Posts: 129
Posted on: 19 Feb 06 17:44
you can officially count me out. i play all my games on pc anyway...and so much more
shuma02
Posts: 72
Posted on: 19 Feb 06 18:02
Get a wife or a girlfriend and we'll see if you're even gonna give a $1,000 dollar toy a second look. :d
Frogfart
Posts: 51
Posted on: 19 Feb 06 18:28
At this price the PS3 will ever be able to penetrate the mass market and software companies will tend to shy away as they won't invest large sums of money for a small return. Sony need to realise that consoles are bought by people who have finite resources. At present the 360 is the only affordable option and it will be dominant by the time Sony release the PS3:g
Quakester2000
Posts: 1119
Posted on: 19 Feb 06 19:57
Looks like sony are making the same mistakes that sega did with the sega saturn. Over priced and too complicated for game makers to get to grip with. This may cost them the title and give microsoft the chance to go to number 1.
[edited by Quakester2000 on 19.02.2006 19:57]
Crabbyappleton
Posts: 5757
Posted on: 19 Feb 06 20:55
Something we have to remember is that Sony is going to take it in the shorts for up to several years. It has been widely posted that they intend this to be a loss leader. At least we know that if we can snag a PS3 for 500 we kicked some major ass. What i think will be a problem is how in the hell can they sell a PS3 for less than a damn Blu-ray drive? I think Sony has painted themselves in a corner!! :d
hey69
Posts: 10
Posted on: 19 Feb 06 20:58
you reall wonder those analysts logic. standalone BDplayers will be 1000+$ ps3 has BD drive so logicly ps3 will be 900-1000$ what a crazy logic. ps3 will launch like any other console at 300-499 euro . Sony know what they are doing.. over 200 million playstation sales, you dont get these by accident
ItsRick
Posts: 100
Posted on: 19 Feb 06 21:31
/rant on If they release this before the Holiday season, the price may be $900. If they wait until Q406, I'd wager consumers will pay $600 for a console bundled with 1 controller. If average BD players are selling for $750-1k, you'd have to be a complete and utter moron not to pick up the new Sony Playstation that will not only play your BD movies with all the HD bells and whistles, but double as the premier way to game. Then, if the game producers manage to create games that play like this thing should be capable of, anyone who owns one is going to buy a few games - even if it's just to try it out. And this thing's supposed to have bleeding edge audio and video thanks to the Cell, right? I think Sony will market the PS3 primarily as an incredibly stylish, cost-effective BD player at first, but also tempt us with gaming that only the most expensive PCs can match in order to make it the most attractive entertainment machine on the market. The best thing Sony could do at this point is add an IR port so we can use our multifunction remotes to control BD-Video features. I don't know about you guys, but I'd MUCH rather pay $600 for something that I can hook up to my exisiting home theatre easily...than $4-5k for a comparable computer (with an assuredly buggy OS) that I could hook up to the same rig. People are buying laptops now anyways... /rant off
CPUSlayer
Posts: 103
Posted on: 19 Feb 06 22:24
"ps3 will launch like any other console at 300-499 euro . Sony know what they are doing.. over 200 million playstation sales, you dont get these by accident" --------------------------------------------------- The only reason Sony sold over 200 million consoles is because after 12 months the dvd-rom drive failed on the PS2! Most people had alot of money in controllers and games so the just bought another PS2 rather than swithing consoles! Everyone I know who had a Ps2 bought 2 or 3 PS2's and now swithed to the Xbox or the 360 because BS sony drive failure and of my recomedations. So look at it this way, sony sold 80 million consoles to consumers. Over 120 million were bought as replacement consoles because of Dvd-rom failures. Its the truth, Unfortanatly the xbox drives has the same failure rate but the replacement drives are available on a dozen web sites...unlike the PS2 you half to buy a new console to replace the Dvd-rom.
CORRSA
Posts: 298
Posted on: 19 Feb 06 22:26
only $900 buks ?wow im back ordering 25 now then im loaded and it dont matter that peope are dying of hunger in the world im alright jack f**k u THE WORLDS GONE MONEY MAD
BenJeremy
Posts: 43
Posted on: 19 Feb 06 23:18
The loss-leader nonsense is exactly that, at this scale. Salling the hardware at a loss makes sense, it you are only losing $50-100 per unit, because there is a certain number of games you expect to sell per unit to make up for the loss. At $900 production cost, along with another $70 in other expenses (marketing, distribution, etc), the most they can afford to lose is about $100, making the unit over $800 per. This won't make companies selling BD players happy, because it undercuts them (Screw them, though), so Sony may be forced to sell it for even more. But even forgetting that, people who rant "it won't be more than $400" or "it won't be more than 500 Euros" are hopelessly deluded fanboys - to make up for that sort of loss, they would need to sell almost 100 games PER UNIT. I don't really seeing them beat the best average per-unit sales, which was about 6 titles per unit. I think Sony has outmaneuvered itself into a hole. The PS3 mated with BD may be the biggest boondoggle in history (bigger than Atari E.T.). If this report is true, I predict that Sony will fold over this fiasco.
Alexandre
Posts: 72
Posted on: 19 Feb 06 23:51
This story is ludicrous.
CPUSlayer
Posts: 103
Posted on: 20 Feb 06 00:02
"This story is ludicrous" ------------------------------------------------- Your comment is ludicrous.
GezusK
Posts: 272
Posted on: 20 Feb 06 00:48
How soon people forget history. Plenty have been on top, and have fallen. Sony isn't immune to it. Remember Atari, Sega, Nintendo....all ruled at one time.
thcz
Posts: 55
Posted on: 20 Feb 06 01:08
IMO sony pretty much knows what they are getting into but the fact is i doubt that they know for how long they can hold their breath if they sell the consoles at a loss. I really hope the sony batteship sinks, Dont like the M$ either but hey you gotta choose one of the evils. :g
Anthony1uk
Posts: 327
Posted on: 20 Feb 06 02:31
$900. Dont they realize the vast majority of PS3's are going to be bought by upper lower or lower middle class parents of snotty nosed kids. Do they honestly think any parent would fork over $900 as a christmas present then pay another $150-200 on stupid games for it. As i doubt that 900 bucks will have any games alongside it. Its ridiculous.
I Have Piles
Posts: 586
Posted on: 20 Feb 06 17:13
it will be $299, any more and the numbers sold will be to early adopters only. Items costing more than 299 $£€ are simply not impulse buys, they require much more thought and normaly that thought is i dont need it just yet.
ivid
Posts: 405
Posted on: 20 Feb 06 17:59
So it will be marketed as a cheap Blu ray drive. Oh, and we forgot to tell you, it won't play Blu ray movies in HD because your HDTV doesn't support HDCP. Go buy a new one, a new SONY one.
shimman
Posts: 596
Posted on: 20 Feb 06 23:11
cannot agree more
BenJeremy
Posts: 43
Posted on: 20 Feb 06 23:17
How could they do that, I ask you.... you are talking Sony eating over $600 per unit, after marketing and distribution. Do you honestly expect them to sell (at about $5 profit per game) 120 games PER UNIT just to break even? Please, get real.
shimman
Posts: 596
Posted on: 20 Feb 06 23:19
i am wondering if ps3 will be able to play bd movies without the add-ons as sony's own bd player is suggested to be 1.7kusd. if they can sell those as linux pc/console, then more will justify the cost, but i don't think sony will let us do that. maybe, cheaper nintendo revolution will be the one we want ?
kamuixtv
Posts: 38
Posted on: 21 Feb 06 23:51
$900? What's the difference? Way back in 2001, Sony is offering package for the PS2 (sports, entertainment, family packages) with 4 games, 2 controllers and 1 memory card for about $700. With PS3 it's a bit different, you will have a Blu-ray, SACD, Mp3, surround player (DTS and Dolby according from wiki) and the gaming console itself with backward compatibility you have 3 consoles in 1.
SciFer
Posts: 193
Posted on: 23 Feb 06 02:39
For all those men complaining about their women... GROW SOME! J/K... but seriously we are just big boys with big toys and those of who can afford it will always be the first on the block to have the newer badest toys first Things never change.:B
ghost_zero
Posts: 51
Posted on: 24 Feb 06 09:12
Well I think that 900$ is more the price I thought that it will cost then the ridiculous price of 300-500$ because it not only has a BD-Drive (that alone costs at the beginning something about 1000$) it also has a CELL-Processor (also not that cheap) and other things like this... The probably will get a mass discount, but still it would be to much for selling the unit at 300-500$... I mean, if they do, they will have too much loss to get it back through games that quickly (at the beginning of the console you probably buy 1 or 2 games - because the console itself costed already some money and at the beginning there are most times not more games you are interested in)...

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