PS3 to retail for $399, cost $494 to make

[quote name='Quackzilla']How much does it cost Intel to get a Pentium 4 chip?
How much does it cost Athlon to get an Athlon 64 chip?
How much does it cost Samsung to get a DVD drive?
How much does it cost Memorex to get a DVD?

How much does it cost Sony to get the PS3 components?

You seem to forget that Sony manufactures and designed (at least in part) almost all of the PS3 components.[/QUOTE]
You seem to forget that just because you manufacture something, it doesn't make it free. It will be cheaper for Sony to get a Cell processor and a Blu-Ray drive into their box, but cheaper means their box costs $400-$500 to make, where it would be over $1000 for some other company.
 
[quote name='bluevoodu']If I am right.... Spiderman 2 was not EA made, right? that was $50 for the PSP. [/QUOTE]
I lump all crappy and/or movie based games into the EA category.

EA is more a genre than a company.
 
[quote name='dafoomie']You seem to forget that just because you manufacture something, it doesn't make it free. It will be cheaper for Sony to get a Cell processor and a Blu-Ray drive into their box, but cheaper means their box costs $400-$500 to make, where it would be over $1000 for some other company.[/QUOTE]
Unless they add an HDD a selling price over $350 seems farfetched.

And a discount online broker firm (what the comapny is NOW) claiming to know how much it costs is ridiculous.
 
[quote name='Quackzilla']Um, all next gen games are supposed to be $50, except EA games on Xbox 360 which will be $60.
Coincidentally, the $50 PSP games are also made by EA.

You are taking the sins of EA and using fanboy logic to associate them with Sony.

BAD FANBOY, BAD! NO BONE FOR YOU![/QUOTE]

Actually, just about every major gaming news publication has hinted that we should expect to see $60 prices in the next generation. Although I wouldn't doubt if Nintendo kept it real and still charged the $50 for new games.
 
[quote name='Quackzilla']Um, all next gen games are supposed to be $50, except EA games on Xbox 360 which will be $60.
[/QUOTE]

According to ebgames.com, ALL games are 59.99 for the 360. Let's hope this changes but somehow I doubt it. My guess is that extra controllers will go from the original opening day costs of 35, to like 50.
 
This price quote was obviously made with todays current pricing. The PS3 probably won't come out until at least March maybe later. By that time all these components will have gone down in price ....

Sony's not dumb. They know what they have at stake here....
 
[quote name='dafoomie']Blu-Ray drives ... are inherently more expensive for several reasons. The disc must spin extremely close to the laser head, and the discs are much more fragile, so the drive needs to be a ton more precise.[/QUOTE]

Is it just me, or did this conjure up "Disk Read Error" in anyone else's head too?
:error: :wave:
 
[quote name='b3b0p']$399

That sure brings back memories...

The Saturn was $399, but came with I believe 3 or 4 games.[/QUOTE]
Another situation to look at.

-Sega had already announced the Saturn at $399, and when Sony announced their $299 pricetag for the PSX at E3 1995 (i think, not sure) the crowd erupted in cheers.

-Also, the PSX was much easier to program for than the Saturn.

These were 2 main things that contributed to the downfall of the Saturn and the prosperity of the PSX, and they're also 2 things that the 360 has over the PS3 (if speculation is to be believed).
 
[quote name='Quackzilla']Unless they add an HDD a selling price over $350 seems farfetched.

And a discount online broker firm (what the comapny is NOW) claiming to know how much it costs is ridiculous.[/QUOTE]

And I suppose you'd have thought a $250 price point for a PSP normal and fair? You piss and moan at every "fanboy" that posted in this thread, while you're taking a fanboy position yourself by ignoring any and all counterpoints.

Nothing is farfetched when it comes to Sony pricing of electronics.

Edit: Oh, and the disc read error will likely be something else for PS3. Remember having to flip over the PSX to get it to play? DRE was just this gen's flaw. Sony doesn't seem capable of making dependable console hardware (though their other home electronics seem to fare far better). I hope they prove me wrong this time.
 
Sony is going to be using the first blu-rays on its launch consoles... looks like youll be paying 400 dollars for a console thats bound to have problems in the long run.
 
In regards to the DRE, at least Sony and Nintendo have the ballsy integrity to let you know it may be the system with their error messages. With the Xbox all you get is an infuriatingly chastising "The DISC you are using may be dirty or damaged". fuck you Microsoft, it's your half-assed excuse for console gaming that's the problem.
 
I'll wait until I hear it from Sony before I make any judgements. I think I remember them saying that the PSP would release for more than it did as well. I don't know if it was that specific analyst though.
 
I'll wait until Sony's critical PS3 flaw gets found and fixed..you know there will be one.

oh wait and a price drop...
 
[quote name='dpatel']I'll wait until I hear it from Sony before I make any judgements. I think I remember them saying that the PSP would release for more than it did as well. I don't know if it was that specific analyst though.[/QUOTE]
Analysts weren't expecting them to take such a huge loss on the PSP, but they did.

Game sales and liscense feesmore than make up for it though, the main think the console makers need to worr about is getting people to buy the console, the game makers then need to make enough profit to pay off the console.

Trust me, after a year nobody is going to have lost money on any of the consoles.
 
Really? Microsoft says "the disc may be damaged or dirty" on their DRE messages?

Knowing Windows errors, I'd expect it to say: "No disc found in console. Please remove disc and try again."

Actually the disk read error was cause by improper lubrication of the laser arm, a mistake that they won't make twice.
Click to expand...

There's a mom joke in there somewhere, but I'm lazy enough to merely point it out. :p
 
[quote name='Strell']Really? Microsoft says "the disc may be damaged or dirty" on their DRE messages?[/QUOTE]

Yeah, and I swear it's the most aggravating thing ever. Especially when you're using a brand new game for the first time. It's like they're saying, "Ok, now, we wouldn't have this problem if you knew how to take proper care of your things" and it makes me fucking murderous.
 
You people act like no console has ever sold at a loss before......that's business. Consoles ALWAYS lose money, it's just how much....you make it up in games and licensing. Same with cars...the scions make nearly nothing for profit, they get all their money in add ons and repairs/maintanence etc. XBox LIVE wasn't profitable for a year or two until it broke even. The Gamecube at launch lost a slight amount then quickly broke even as costs went down on the hardware.
 
[quote name='MaxBiaggi2']Legions of PSone/PS2 fanboys will eagerly pay $100+ over the price of 360 to get a PS3, so I don't think Sony has to worry about coming in at a reasonable price to move its new systems. [/quote]

There will be people that will buy the system just because it's named "Sony," that I don't doubt. But there are also people who're going to buy the console because they:
- Recoginize the potential it has
- Have seen (projected) images of what it's going to look
- Know that there will be quality games to play (Gran Turismo, Metal Gear, Final Fantasies...etc)

[quote name='MaxBiaggi2']Microsoft had much better hardware this generation (and subsidized it at a loss per system sold), and yet PS2 easily outsold Xbox with weaker hardware at the same price point. All most of the casual gamers care about is the "Playstation" name, so I don't think it will matter how Sony prices the PS3.[/quote]

Yeah, 'cause 'Microsoft' wasn't a big name when the XBox came out, was it? The reason the Playstation 2 outsold the XBox was because the (arguably) superior library of games it had. It was a much better system for RPG fans, and people like myself prefer the controller for sports games.
 
[quote name='Kayden']You have to keep in mind a couple of factors... One, a P4 is a comercial component. It's sold to customers and is subsequently marked up at each transaction ( Manufacturer, wholesaler, retailer...) They are also more expensive because they need to be more flexible than a console cpu would be. There are many more hardware configs that a P4 would need to support. A Cell processor would only need to work with the PS3 hardware. Additionally, Sony can get the CPU cheaply because 1- its being made soley for them, 2- they have a hand in production, 3- they order in 1,000-100,000 unit batches that get a large group discount.[/QUOTE]

You have to keep in mind a couple of factors. A P4 is produced in far greater numbers than the cell processor will be. That means that the chip is far far cheaper per unit than the cell will be. I understand that there are going to be markups at every level of sale. But looking at a P4 with performance far below the levels of the cell processor I allowed a hefty 100% markup between manufacturer and retailer. Even granting it might be a 300% markup, which by the way is freaking huge, that puts a P4 at costing 50. It is perfectly plausible that a Cell processor, which is new and will be produced in numbers far lower than a P4 will, could cost 100.
 
$399? Ouch! I'm not a graphics whore, nor am I made of money, so I'll be waiting quite a while to pick up one of these babies. Probably years.
 
$399 is a good price point for the PS3. They will sell fairly well I bet. If the 360 releases with a bunch of good games the PS3 might struggle for awhile but with full backwards compatibility the PS3 won't fail.

I'm gonna have to wait on the PS3 til they fix their design flaws in newer versions...but I'm definitely buying it.
 
Sony used a similar strategy of hyping up/shrouding in mystery the cost of the psp, then when it was released, many declared the pricepoint a great deal since they thought it would be more.
And before that, the launch price of the original ps was a killing blow to the saturn. Sony does a great job in terms of moving people to where they want them to stand. Manipulating what people consider a "fair and good" value for a product is something sony has always excelled at.
 
If I somehow have the money when it comes out I'll buy it. I miraculously got money for the PSP when I thought I wouldn't, so miracles do happen :)

I wouldnt be too upset if I couldnt get it for awhile, seeing as Sony says they want to keep the PS2 going for atleast another 5 years.
 
[quote name='evilmax17']Another situation to look at.

-Sega had already announced the Saturn at $399, and when Sony announced their $299 pricetag for the PSX at E3 1995 (i think, not sure) the crowd erupted in cheers.

-Also, the PSX was much easier to program for than the Saturn.

These were 2 main things that contributed to the downfall of the Saturn and the prosperity of the PSX, and they're also 2 things that the 360 has over the PS3 (if speculation is to be believed).[/QUOTE]

I remember buying the Saturn at $399, no extra games. I bought I guess 10-15 games for it total. Sad part is, it was a great system. Problem was there was just not that many games for it. Telling EA that we don't need you didn't help them much either. I watched the 3 press conferences at E3. The PS3 seemed the easiest to program for. The 360 in my opinion as a programmer is easy to program for as well. But I think Sony gives a lot more support in the hardware department in helping the developers. The price tag it a sticky point. If both systems hold to a 299 tag I will get each system. I will not get either system at release if the price tag is that high. It will take over a year for the first price drop pending on availability of systems.
 
[quote name='dafoomie']Toyo Keizai is pretty well respected... If they say its $399, plus other sources say its $399, then it might just be $399. If the cost analysis is accurate at all, they would never sell for $299 and take a $200 loss on each unit. But, they could be overestimating the costs for each component.

Even if PS3 launches for the same price that 360 launches at, MS could still do a price drop on the same day, which would be a big deal. If PS3 launched at $100 more, and then 360 did a price drop on top of that, it would be crippling.[/QUOTE]

this is just another reason for me to hold off on the 360 for now. :D i can wait 6 months to see if they drop the price to take some business away from sony. all the cags will be winners in that situation hehe.
 
Originally Posted by dafoomie
Toyo Keizai is pretty well respected... If they say its $399, plus other sources say its $399, then it might just be $399. If the cost analysis is accurate at all, they would never sell for $299 and take a $200 loss on each unit. But, they could be overestimating the costs for each component.

Even if PS3 launches for the same price that 360 launches at, MS could still do a price drop on the same day, which would be a big deal. If PS3 launched at $100 more, and then 360 did a price drop on top of that, it would be crippling.
Click to expand...
What if Microsoft not only dropped the price on the 360 on the PS3 release date, but also released Halo 3 on that day?
 
[quote name='Kaijufan']What if Microsoft not only dropped the price on the 360 on the PS3 release date, but also released Halo 3 on that day?[/QUOTE]

that would be funny as hell

if microsoft leaks that they were gonna do that on ps3's release date, i would consider not quitting my job at eb just so i can be working when that happens.
 
[quote name='JSK414']Can't wait for my xbox360. (I'll prolly get flamed for this) But this generation I bought Playstation 2 and gamecube at launch. Got xbox at the first bundle ($199.99 and Jetset radio and some sega crap racing game), Playstation 2 by far was my least favorite system. I think it was so over hyped. The ONLY reason I am happy with my playstation to is Final Fantasy 10 and the Time Crisis franchise. Other than those 3 games I don't own any. Xbox by far was my favorite this generation. To be honest I loved playstation got it on launch day, thats why i caved for the ps2... The ps2 let me down, personally, and sony wont see my buisness until their system is atleast $150(if the ps3 can ever afford to go that price). I hope microsoft and nintendo takes some of the huge market share this generation....We all know nintendo won't,,, Their hardware specs looks just for the casual gamer. They only way to go this generation is up for nintendo tho. I still liked their gamecube (only with friends). Gamecube is a party system, xbox has great games, graphics, xbox live, and ps2 ONLY has rpg's. PS2 is so @#$%@#%@ over rated.


XBOX 360!!!! down with PS3!!!![/QUOTE]

I am the exact opposite. Bought ps2 on launch and xbox @ first bundle as well. PS2 owns my soul, xbox owns my pinkie toe on my left foot(I kick with my right). I only own the sega gt + jet set radio that came with my xbox and halo 2. I own 10+ for ps2.
 
[quote name='Mr Durand Pierre']I haven't bothered reading this whole thread, but there's a key issue I'm missing here: Why the hell would they sell it for less than it costs to make?[/QUOTE]

This is a common practice among console makers. They figure if you sell the system, you can make up the money you lose by selling software and accessories. If I'm not mistaking, I believe the Xbox just became a profitable operation last winter. Retail stores do the same thing. When a new release comes out on DVD, stores will sell it for a few dollars less than what it costs them. This is called a "loss leader". They are trying to get people into the stores so that they can buy other items.
 
[quote name='help1']Sony is going to be using the first blu-rays on its launch consoles... looks like youll be paying 400 dollars for a console thats bound to have problems in the long run.[/QUOTE]
No they aren't. Blu-Ray products have been available to the public in Japan since last summer. Expensive and rare yeah but they are out there. They are already on the third generation(6x speed, no longer needing the cases due to the refined protective layer and support for four layers are the major parts of it) of Blu-Ray tech I believe. It's not like Sony just started working on Blu-Ray a year or two ago.
 
[quote name='WAJedi']This is a common practice among console makers. They figure if you sell the system, you can make up the money you lose by selling software and accessories. If I'm not mistaking, I believe the Xbox just became a profitable operation last winter. Retail stores do the same thing. When a new release comes out on DVD, stores will sell it for a few dollars less than what it costs them. This is called a "loss leader". They are trying to get people into the stores so that they can buy other items.[/QUOTE]

You mean only among MS, Sony and formerly Sega. Nintendo learned their lesson and they WON'T sell their console for a loss if they can help it. At worst Nintendo will break even. Nintendo so far has sold the Advance, SP and DS for a profit and I don't think they're gonna stop doing that because unless you have any alternate industry to take the hit in loss you'll end up like Sega.
If the PS3 and XBox 360 both go for $400, no fucking way I'm picking either of them up on launch day. As tempted as I'll be I'll hold out. If the PS3 was $300 I'd probably buy it with one of EB's warranties. Seriously one of my big things about the PS3 is that it can play SACD's. This alone is great seeing included.
 
I'm sure I'll eventually pick up all three consoles, but as it is now I'm probably only going to get the 360 at launch.
 
[quote name='Kaijufan']What if Microsoft not only dropped the price on the 360 on the PS3 release date, but also released Halo 3 on that day?[/QUOTE]
That could very well put Sony into second or third place for the rest of this console cycle.

This seems like a bad decision on Sony's part, but we've got to assume that they know what they're doing by selling the consoles for $400. Still, I'm not sure if they've thought of all of the potential ways Microsoft could react and wreak havoc on their sales.
 
PS3 $399.99 won't sell well unless it take 1-2 years later
PS2 $89.99-$99.99 or less (alot peoples will buy PS2 instead PS3)
PSP is goind down & dying soon. lol

XBOX 360 $300 it hurt PS3 but i don't think it sell well anyway!

Nintendo Revolution $200 - $250 will knock down XBOX 360 & PS3 :)
DS $99.99 - $129.99 will rock in 2006 ;)
GameBoy Revolution in 2007 ??
 
[quote name='Quackzilla']Actually the disk read error was cause by improper lubrication of the laser arm, a mistake that they won't make twice.[/QUOTE]

disk read errors are nothing....you should see the problems i've had due to improper lubrication. not pretty
 
[quote name='davidb69']I remember buying the Saturn at $399, no extra games. I bought I guess 10-15 games for it total. Sad part is, it was a great system. Problem was there was just not that many games for it. Telling EA that we don't need you didn't help them much either. I watched the 3 press conferences at E3. The PS3 seemed the easiest to program for. The 360 in my opinion as a programmer is easy to program for as well. But I think Sony gives a lot more support in the hardware department in helping the developers. The price tag it a sticky point. If both systems hold to a 299 tag I will get each system. I will not get either system at release if the price tag is that high. It will take over a year for the first price drop pending on availability of systems.[/QUOTE]

i know it's prob been said before, but if u imported japanese games, saturn was the jam. of course, i love fighters and shmups, so i guess that might be why i love saturn. but i definitely played my saturn more than any other console since, unless u count sf3 on xbox live ;)

btw the $399 included Virtua Fighter, and they sent u the free VF Remix if u registered.
 
[quote name='JSK414']Oh, and did I mention... GO XBOX 360!!!! DOWN WITH PS3!!!!!![/QUOTE]


ok

1) stop trying to turn this topic into a fanboy flaming war.
2) i dont care which system you think is better, buy saying xbox have better software than the ps2? thats a little too much.
 
Wait, wait, wait. Everyone's getting their panties in a twist over what Merril Lynch is saying about the price of the PS3?? Are you people stupid or something?? They also said back in 1999 that the PS2 would come out in Japan on January 1, retail for 45,000 yen, games would cost about $70, and there would be a bunch of "enhanced" PS1 games available at launch.
 
i plan on waiting 5 years before even considering buying a new console, they will drop to $150 or so(that is what i paid for a new ps1, a new ps2 and a new xbox, and will probably get the new 360 and ps3 when they drop in price as well.

heck i might even sit out this generation all together. too many games, too little time.
 
[quote name='evanft']Are you people stupid or something?? They also said back in 1999 that the PS2 would come out in Japan on January 1, retail for 45,000 yen, games would cost about $70, and there would be a bunch of "enhanced" PS1 games available at launch.[/QUOTE]

To refute three of your points:

PS2 came out March 21, I believe (3/21 as opposed to the PS1s release on 12/3). While inaccurate, that wouldn't be a terrible estimate.

PS2 launched at, if I remember correctly, the same 39,800 yen that PS1 launched for. Again, their estimate isn't accurate, but it's at least in the same ballpark.

PS2 also had a relatively shitty launch lineup. Many games didn't even necessarily look up to Dreamcast standards.

Now, with that out of the way, I think you may have gotten your facts a little backward, because I can't seem to find any such estimates from 6 years ago anywhere. If you could provide a link to an old article, that'd be appreciated. However, as it stands, I'm fairly certain that the estimates provided here are at least in the right range.
 
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