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

daRk_heLmet · Jun 29, 2005, 05:02 PM

Merrill Lynch Japan predicts Sony will lose more than $1 billion on hardware during its next-gen console's first year on the market--a sum it may not be able to recoup.

According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006.

Merrill Lynch Japan estimates that the machine's main components--namely its Cell chip, RSX, and BD-ROM drive--will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine's production cost goes up to 54,000 yen.
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Read More/Source: Gamespot

blown503 · Jun 29, 2005, 07:01 PM

I dont think it will cost sony that much to make. They get those chips at a fraction of retail because they buy 100,s of thousands at a time.

Dark Lord · Jun 29, 2005, 07:08 PM

and they are getting them at a fraction of the price.

the new 7800GTX is going for like 650.00 USD. from what i understand, the PS3's RSX is basicly the same card, but devloped for the consoles in mind. in the article they said they estimate that their cost will be 100 bucks per card.

nitrousoxide52 · Jun 29, 2005, 08:15 PM

It costs nvidia around 10$ to make that graphics card too

, haha they're loaded.

YAYitsAndrew · Jun 29, 2005, 09:16 PM

There's more that goes into producing a card than the raw materials. Don't forget the team of engineers designing the cards as well as the developers writing drivers. Then there's the advertisements, sales people, etc etc.

The_Neon_Cowboy · Jun 30, 2005, 12:22 AM

things cost more at first, but as the yealds improve the cost goes lower and lower...
It's not unuseal to see 70-80% falure rate in the start of production of a CPU and in the end or production is less then 5-10% as the refine processes etc... So the 1st ones cost the most

Jun 29, 2005, 05:02 PM	#1
daRk_heLmet Keep firing, assholes! Join Date: Nov 2004 Location: Death Star Posts: 1,072 Rep Power: 0	PS3 to sell for $399, cost $494 to make Merrill Lynch Japan predicts Sony will lose more than $1 billion on hardware during its next-gen console's first year on the market--a sum it may not be able to recoup. According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006. Merrill Lynch Japan estimates that the machine's main components--namely its Cell chip, RSX, and BD-ROM drive--will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine's production cost goes up to 54,000 yen. ________________________ Read More/Source: Gamespot __________________ [color=white]My Blog[/color] Last edited by MIG-31; Jun 29, 2005 at 05:08 PM. Reason: added the link

Jun 29, 2005, 07:01 PM	#2
blown503 HardwareHeaven Senior Member Join Date: Jan 2003 Location: S. Indiana Posts: 573 Rep Power: 0	I dont think it will cost sony that much to make. They get those chips at a fraction of retail because they buy 100,s of thousands at a time. __________________

Jun 29, 2005, 07:08 PM	#3
Dark Lord HardwareHeaven Extreme Member Join Date: Jul 2004 Location: Grand Rapids, MI Posts: 5,945 Rep Power: 125 System Specs	and they are getting them at a fraction of the price. the new 7800GTX is going for like 650.00 USD. from what i understand, the PS3's RSX is basicly the same card, but devloped for the consoles in mind. in the article they said they estimate that their cost will be 100 bucks per card. __________________

Jun 29, 2005, 08:15 PM	#4
nitrousoxide52 Driverheaven.com err .net Join Date: Jan 2005 Posts: 1,719 Rep Power: 0	It costs nvidia around 10$ to make that graphics card too , haha they're loaded. __________________ AMD Athlon64 X2 3800+ XFX Geforce 7800GT ABIT AN8-SLI BFG Tech 650w

Jun 29, 2005, 09:16 PM	#5
YAYitsAndrew Anti-Piracy Poster Boy Join Date: Oct 2004 Location: NJ Posts: 2,605 Rep Power: 79 System Specs	There's more that goes into producing a card than the raw materials. Don't forget the team of engineers designing the cards as well as the developers writing drivers. Then there's the advertisements, sales people, etc etc. __________________ "It is because the resistance to paying for copyrighted material, although often characterized as arising from a supposed technical burden or principled concern for the public interest, arises rather from exactly the same segment of the brain that is dominant in shoplifters." - Mark Helprin, Digital Barbarism In other words, it's never okay to steal even if you think you have a good reason! www.yayitsandrew.com

Jun 30, 2005, 12:22 AM	#6
The_Neon_Cowboy HardwareHeaven Extreme Member Join Date: Dec 2002 Location: U.S.A. Posts: 16,009 Rep Power: 92 System Specs	things cost more at first, but as the yealds improve the cost goes lower and lower... It's not unuseal to see 70-80% falure rate in the start of production of a CPU and in the end or production is less then 5-10% as the refine processes etc... So the 1st ones cost the most __________________