Blue laser diode costs down to US$ 8 each, could PS3 price cut be near?

Posted Apr 25, 2007 at 2:18PM by Karl B. Listed in: PS3 Tags: Michael Pachter, Sony
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Sony PS3 - Image 1Sony's already got a good supply of blue laser diodes, so we could probably expect them to step up PS3 production in the coming months. While that in itself is good news, here's some more: blue laser diode costs have also gone down.

According to GameDaily, Sony "expects that starting this June blue-violet laser diodes will only cost 900 to 1,000 yen (meaning only a bit over US$ 8 per diode)." The entirety of the Blu-ray drive was estimated to cost around US$ 125 per unit, but as a new component, the blue laser diodes likely accounted for a pretty good chunk of the cost. Now that they're down to around eight bucks each, could we be looking at a possible price cut for the PS3?

Wedbush Morgan's Michael Pachter thinks so. Speaking to GameDaily, Pachter said that yes sirree, it indeed means that Sony is "definitely in a position to cut price." Please note the italics (which were in the quoted text), because when it comes to price cuts, we can't be sure of anything just yet.

"God knows whether they will, but lower costs usually lead to lower prices," continued Pachter. "The right question to ask is whether the full bill of materials is below US$ 499, allowing them to cut price and still avoid losing money. I'm not competent to answer whether it is, but I am competent to say that when cost is below US$ 499, we should look for a cut to that level."

Via GameDaily

 
 
 

Comments [refresh]

by Takenover83 - 2007-04-25 09:44
» Nooo, Just no.

I think Sony has confirmed like 100 time over the last few week's that there is not going to be a price cut anytime soon. There is no reason one at this time. Why? They will wait till the time is right, strategically cutting the price at the worst time for here competitor's. So QJ, quit posting crap.

by Jerses - 2007-04-25 09:45
» da

Nah.. this only means real profits to sony, the one's they are losing from selling the PS3 at production price ( or lower ). Sorry about my english.

by Bob - 2007-04-25 10:26
» It's too soon

It would be corporate suicide to drop the price right now.



The biggest supporters of the console are the early adopters. Piss them off and you can say goodbye to your business.

by hmm - 2007-04-25 10:30
» hmm

The 360 is going to drop its price before the PS3 does.

by badboy - 2007-04-25 10:50
» nahh

"The 360 is going to drop its price before the PS3 does."



ohhhh i don't think so... with 5 billion dollars worth of loss they will keep their price as it is....even if xbox production cost lowers

by Razgoull - 2007-04-25 11:22
» Uhmm...

Sony will use the same strategy they use with the PS2, against the DREAMCAST. Don't tell me you forgot already...

by badboy - 2007-04-25 11:29
» really??

i was too small to remember lol



what was sony's strategy to beat dreamcast??

by Quixand - 2007-04-25 11:42
» i don't think

Sony will do a price cut... they're already losing money with every PS3 sold... this just helps them minimize their loses.

by Takenover83 - 2007-04-25 12:25
» Ill tell ya

Sony strategy to beat the Dreamcast was 3rd party support, and not to mention the new dvd technology.



This time around, they don't have the 3rd party support advantage. And there console cost twice as much, as there last. So they are kinda killing themselves.

by B4H4M00T - 2007-04-25 13:41
» lol

olol twice as much.. u sire are on crack... PS2 back then when it came out was 449$ CAD.. i paid about 650$ for ps3 in 2k6 ;) only 201$ more expensive... not exactly double is it ;) Also the only reason ps3 is *****ing expensive in Europe is because of their Value Added Taxes... sad bastards but oh well vive la France eh? lolz...

by Razgoull - 2007-04-25 14:11
» I knew you will forgot...

In that time...

Ps2 = 500$ ( 575$ in CAD)

Best Launch games = SSX, timesplitter

Worst launch games = All the others and FANTAVISION

DVD Drive = Peoples in that time says " to expensive and can't record on it like VHS. It sucks, I'll wait, CD rules! "

AAA Titles = 1 year after the launch (FFX, MGS2)



VS



Dreamcast = 1 year ahead launch 299$

Best games at PS2 launch = SoulCaliber, Dead or alive 2, Resident evil: Code Veronica, Street Fighter 3rd Strike, shenmue.

problems:3rd party companies was scare about the financial problems SEGA as. But in the same time developers was worry about the PS2 because of the high price.



Gamers was judging the PS2 because the first year it as no graphic difference againts the Dreamcast. SoulCaliber as the best graphic in that time.



Then we know what's happen next...

by Quixand - 2007-04-25 15:00
» hahaha..

yes i remember now.. good memory Razgoull and very detailed.

by Mr.Random Facts - 2007-04-25 17:44
» Maybe

Pehaps, and im saying perhaps , the past dont eman ***** i mean i love sony i hae a ps3 ad i think it rules , but perhaps itll be diff this time maybe Xbox 360 will rull or like wise ps3 or maybe both th ps3 and 360 will end up like gamecubes Lol andway either way VIVA LA PS3 and even 360 coz int he end there mad for the consumer idiots BUY BOTH

by tyrty - 2007-04-25 20:05
» 5 Billion is crap, you are talking about entertaintment devolopment section not just the 360

There is NO 5 billion dollar loss on the 360 you are not including development of the Zune etc so stop talking crap, and go look how much Sony is losing on the PS3 at the moment and then come back and post again..

by werwe - 2007-04-25 20:13
» Dremcast ? you are mistaken

Then we know what happened next Two things

1. a company (Sega)that didnt have the huge finances Sony has could not compete and was crushed.

2. Sony then almost had a monoply, (which as we are always being told would be bad for gamers if the 360 does the same).



BUT this time there is a company whose 1 year console advantage has seen them sell over 10 million units, not quite the same thing as the Dreamcast EH!.



And this time they wont wanna mess with this other company because this other comapny has far huger finances than them and we all know what could happen to Sony next...

by the should - 2007-04-26 01:58
» drop

the price ill buy one

by PS3Rider - 2007-04-26 03:18
» to tyrty

lol you have no idea. Sure Sony may be losing money with the PS3 but no where near 5 billion US dollars worth. And any money they have lost is regained with Sony Bravia TV sales and other electronical departments.



Unlike Microsoft who's only source of revenue at the moment is Vista, Zune, XP and Xp related products and the 360. And seen as though Vista is selling hardly anything, most users have XP, 360 has lost a lot of money in Japan and advertising in Hong Kong and the Zune has no where near enough market in the music bussiness, I think that Microsoft is digging a hole for themselves.

by PS3Rider - 2007-04-26 03:20
» to werwe

the dreamcast did sell 10 million

by BlacKDraGoN_ - 2007-04-26 04:28
» hahaha. no way..

that sony will do a price cut. the fact that production costs are less will make them take their chance to make more money off of each system sold.

by Ozzie - 2007-04-26 07:13
» They will drop the Price

THE reason Sony won't say they will just drop the price is odvious. Why would u tell all these people that the price will drop soon when u can drop it later, get some more profit from the the previous price then when the big games like MGS and FFXIII come out then drop the price and they will rule the 2007 holiday season simple as that. MS knows that why do u think they came with the Elite all of a sudden!!!!!!!!!

by WiiCool - 2007-04-26 08:13
» nah, i don't think so

not this year, maybe next year-and by the way, ur saying as if MS and Nintendo don't have AAA titles coming out holiday season too. I think Wii and 360 will sell better, but that's just my opinion-not the future. And no, MS came out with the Elite b/c their console was not selling well, so they needed something for very-hardcore gamers. I hope they do the same thing with the Wii.

by TJ - 2007-04-26 13:28
» 1

Why the heck would they step up production? They can't get rid of the PS3s on store shelves now.

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