PS3 delayed until 2007?
According to a recent Merrill Lynch report, the launch of the much anticipated SONY Playstation 3 may be delayed until 2007. The reason - the PS3 is prohibitively expensive to manufacture. Industry analysts believe that each PS3 unit will cost $900 to produce initially due to the use of technology that is so new and unique to the next generation Playstation. The Cell processor, NVIDIA RSX GPU, Blu-Ray drive and unique XDR memory add up to $700 alone.
The XBOX 360 costs Microsoft a reported $715 to produce, retailing for $400 each. To stay competitive with Microsoft, SONY has to sell the PS3 for no more than $500, at a loss of $400 per unit. If SONY delays the launch into 2007, manufacturing costs may come down as much of this newest technology will become more standardized.
Although SONY is denying this report by ML and is still claiming that the PS3 will be launched this Spring, according to Reuters, their silence and vagueness on this issue isn't supporting their claim. If the PS3 is due for a Spring launch, there still hasn't been any official announcement on price and pre-orders.
This very bad news for SONY and those of us who are holding out for the PS3 and opting not to buy the XBOX 360 YET. Microsoft may have a year or more lead on SONY in the next generation console wars. The PS3 must be that much better if it is to regain lost ground to the XBOX 360. I will still be holding more breathe... but not until I turn blue.
Source: Merrill Lynch PS3 Report and Reuters
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The XBOX 360 costs Microsoft a reported $715 to produce, retailing for $400 each. To stay competitive with Microsoft, SONY has to sell the PS3 for no more than $500, at a loss of $400 per unit. If SONY delays the launch into 2007, manufacturing costs may come down as much of this newest technology will become more standardized.
Although SONY is denying this report by ML and is still claiming that the PS3 will be launched this Spring, according to Reuters, their silence and vagueness on this issue isn't supporting their claim. If the PS3 is due for a Spring launch, there still hasn't been any official announcement on price and pre-orders.
This very bad news for SONY and those of us who are holding out for the PS3 and opting not to buy the XBOX 360 YET. Microsoft may have a year or more lead on SONY in the next generation console wars. The PS3 must be that much better if it is to regain lost ground to the XBOX 360. I will still be holding more breathe... but not until I turn blue.
Source: Merrill Lynch PS3 Report and Reuters
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