Sony going to lose $100 on each PS3 sold?

[Kolzig]

This is all just speculation but, according to Gamespot, respected analysts at Merrill Lynch Japan say that Sony's PS3 production costs of a single console will be $494 and that if Sony wants to compete against Microsoft, they'll have to sell the console at the price of $399.

That would mean that Sony might lose more than $1 billion on hardware during its next-gen console's first year on the market.

However, Merrill Lynch Japan warns that the normal console business cycle may be disrupted if Microsoft cuts the Xbox 360's price when the PlayStation 3 launches. The report goes on to say that such a move could hurt Sony's plans, bringing an additional loss of 80 billion yen ($730 million) in its second year and 50 billion yen ($457 million) in its third year. Thus far, Sony has already invested 200 billion yen ($1.83 billion) into development and production for the Cell chip alone.

[twmac]

If that is true, I'm genuinely going to be really happy to see that happening.

[Tanukitsune]

Then.... if we buy lots of them... They will go bankrupt?

[Marek]

[ysbreker]

Go team nintendo!

'lachende derde' And 'Als twee honden vechten om een been, de derde loopt er toch mee heen' But then in english

[Roderick]

Laughing Third

When two dogs engage in mortal combat over the same bone, the third walks away with it

I love translating proverbs in a convoluted fashion.

[Twilo]

This sounds a lot like what microsoft did with the xbox last time. In that case they made it back on game sales.

It's not as if sony can't afford it.

[Chris]

Hardware often loses money, but that analyst report notes though that what makes this case notable is that Sony might not be able to recoup the losses through game royalties this time. If Microsoft indeed launches Halo 3 the day the PS3 goes on sale (which does seem pretty unlikely based on Bungie's response to that plan) and if they instituted a price drop at the same time or just before, that could be disastrous for Sony. Personally I hope they fucking destroy each other. Neither system looks appealing to me at all right now. The 360 surely won't have enough of a good games library for me to want to buy it for months, and with the PS3 I'm genuinely worried that it will simply be flooded with nothing but hugely-expensive blockbuster titles. I really have no plans to shell out $400+ just so I can play an even more photorealistic version of Gran Tourismo or some bullshit. The more I think about it, the more outrageous it is to me. I hope Nintendo just gets their act together and releases their system in a more timely manner than they've been hinting they will, and if at all possible somehow release it with HD support (I don't even want to think about how many people will automatically pass it up based on stuff like that when deciding which machine to get).

[MrHoatzin]

When two dogs engage in mortal combat over the same bone, the third walks away with it

TarataratataratatatartartaraTA! FINISH HIM!

[Karimi]

Ah... they are wily ones ... and witty ... LIKE A FOX !

NAY ! A bunch of foxes.

[Erkki]

This is great.

[Dingo Chavez]

I knew all that vodoo I casted would finally pay off, awesome!

Marek, that picture made me laugh quite hard (I also saved it). It's all about the timing.

[Lechimp]

Hey, Miyamoto isn't wearing lipstick in that picture!

but his eyes are missing

[Chris]

Oh man I can't stop looking at that picture.

[MrHoatzin]

It would look better with a burning pyre of Sony and Microsoft stock in the background.

[Moosferatu]

I think I smell the next IdleT feature art.