iSuppli says PS3 is a "great bargain" |
Ó
It's common for console makers to sell their new systems at a loss,
banking instead on software sales to make up for the losses. At the Xbox 360's launch last year, Microsoft
was estimated to have lost around US$ 125 per console. Nintendo, however, has traditionally sold its
consoles at a profit, with the upcoming Wii continuing this practice. Last month, Sony revealed that its game division expects to lose ¥ 200 billion (US$ 1.7 billion) this year due primarily to expenses associated with the company's new PS3 console. An in-depth analysis of the next-gen console shows that materials and manufacturing costs for the system amount to US$ 805.85 and US$ 840.35 for the 20GB and 60GB version, respectively.
According to electronics supply chain researcher iSuppli, analysis shows that Sony loses US$ 306.85 per 20GB hard-drive equipped PS3 sold. This amount is greater than what Sony loses on the 60GB PS3, which has a US$ 241.35 difference between the cost and retail price. These losses do not include the packaging, cables, and the cost of the SIXAXIS controller.
iSuppli said that while the size of SonyÂ’s loss per console sold is "remarkable, even for the videogame console business," the components within are all highly impressive pieces of electronics, including the US$ 129 RSX graphics chip from Nvidia and IBM's US$ 89 Cell processor.
"The reason why the PlayStation 3 is so costly to produce is because it has incredible processing power," explained Andrew Rassweiler, teardown services manager and senior analyst at iSuppli. "If someone had shown me the PlayStation 3 motherboard from afar without telling me what it was, I would have assumed it was for a network switch or an enterprise server."
Overall, iSuppli called the PS3 a "great bargain," saying the console has "more processing power and capability than any consumer electronics device in history."
Via iSuppli
Contact Us:
The QJ.net Network |
 |
| Site | Feed |
| QJ.NET | RSS |
| Nintendo DS | RSS |
| PlayStation 3 | RSS |
| PSP Updates | RSS |
| Wii | RSS |
| Xbox 360 | RSS |
| MMORPG | RSS |
| Personal Computer Games | RSS |
| iPhone - iPod Touch | RSS |
| QJ.NET Forums | RSS |
Add QJ.NET
User Favorites - December
User Favorites - December
Categories
Archives
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
Comments [refresh]
hmm
1st comment
love my PS3!
Wasn't that supposed to be the real expensive part that no consumer cares about?
cell blah blah blah ive seen both consoles now its real difficult to decide which to get because both games look the damn same , ps3 does not have 300 dollars worth of better graphics. cell processor power? where is the power? prove it.. i think im just gonna go to pc.
It's up to the game developers to prove how powerful the console is.
That's if the game developers can actually afford the SDK package price SONY is asking for compared to the 360/PC XNA package or the Wii/Gamecube package from Nintendo ontop of the price for the software engines that will power the 3D graphics, audio, physics and AI along with any middleware material. Then the developer will be looking at the current installbase for each platform, IE how many units of the hardware is currently SOLD and owned, and what type of demograph the studio wishes to cater with their upcoming game idea. High SDK Price plus low install base at the moment (due to such stark shortages) isn't exactly tasty to a budget tight studio.
That's if the game development company decides they want to start a lengthy and expensive project to build a half-decent game, for a games console which has no user base.