PS3 launch, price doubts batter Sony stock
With all the rumours flying around about the cost and maybe losses that Sony may make on the PS3 i thought i should post some information i have found by researching the topic.
Sonys share prices have sunk 3.6 percent on predictions of $900-per-console manufacturing cost, and a 2007 release (which still isnt certain). Sonys shares dropped 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). With all the delay rumours flying around Sony have suggested they make not make the Spring 2006 window and may have to wait for an autumn launch in Japan and a late 2006 or early 2007 launch in the US.
The problem points are the Sony Cell processor and the Blu-ray drive & heat-generation issues with PS3 hardware and the far from finished state of most games for the platform. The production cost of a single Cell processor will be $230 at launch, & the Blu-ray drive will set 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 or even close, 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.
Good luck to Sony to get everything finished and at a price we can all afford because i for one am not shelling out that kind of cash for a console. I will wait for the prices to drop first, but this may cause Sony to lose even more money by having to drop the prices so early.
With all the rumours flying around about the cost and maybe losses that Sony may make on the PS3 i thought i should post some information i have found by researching the topic.
Sonys share prices have sunk 3.6 percent on predictions of $900-per-console manufacturing cost, and a 2007 release (which still isnt certain). Sonys shares dropped 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). With all the delay rumours flying around Sony have suggested they make not make the Spring 2006 window and may have to wait for an autumn launch in Japan and a late 2006 or early 2007 launch in the US.
The problem points are the Sony Cell processor and the Blu-ray drive & heat-generation issues with PS3 hardware and the far from finished state of most games for the platform. The production cost of a single Cell processor will be $230 at launch, & the Blu-ray drive will set 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 or even close, 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.
Good luck to Sony to get everything finished and at a price we can all afford because i for one am not shelling out that kind of cash for a console. I will wait for the prices to drop first, but this may cause Sony to lose even more money by having to drop the prices so early.
