PS3 launch, price doubts batter Sony stock

Dark Drakan · 03-09-2006, 04:37 PM

With all the rumours flying around about the cost and maybe losses that Sony may make on the PS3 i thought i should post some information i have found by researching the topic.

Sonys share prices have sunk 3.6 percent on predictions of $900-per-console manufacturing cost, and a 2007 release (which still isnt certain). Sonys shares dropped to 5,300 yen ($45) per share. The fall affected the entire Tokyo stock market, with the Nikkei index dropping 1.75 percent to 15,437.93 yen ($130.57). With all the delay rumours flying around Sony have suggested they make not make the Spring 2006 window and may have to wait for an autumn launch in Japan and a late 2006 or early 2007 launch in the US.

The problem points are the Sony Cell processor and the Blu-ray drive & heat-generation issues with PS3 hardware and the far from finished state of most games for the platform. The production cost of a single Cell processor will be $230 at launch, & the Blu-ray drive will set Sony back $350 per unit. However, the $900 price tag presumably includes a $100 optional hard drive, as a breakdown of component costs in the report totals just $795. If the $900 estimate is correct or even close, that means the PS3 would have to sell for around $775-$800 to maintain a $100-$125 per-unit loss similar to that of Microsoft's Xbox 360.

Good luck to Sony to get everything finished and at a price we can all afford because i for one am not shelling out that kind of cash for a console. I will wait for the prices to drop first, but this may cause Sony to lose even more money by having to drop the prices so early.

projectego · 03-09-2006, 05:12 PM

I've made it a rule not to buy any consoles from the launch date anymore, since both the Nintendo 64 and Microsoft Xbox fiddled me when the price reduced no more then a few months after the two of them original launched.

Dark Drakan · 03-09-2006, 05:14 PM

Quote:

Originally Posted by projectego

I've made it a rule not to buy any consoles from the launch date anymore, since both the Nintendo 64 and Microsoft Xbox fiddled me when the price reduced no more then a few months after the two of them originall launched.

oh yeah i forgot about that. Its probably a good idea and i try to resist but i give in to temptation. I do the same with games, if theres a game i want i either pre-order it or get it the day it comes out, i cant help it

I doubt i will have the same temptation if it does turn out to be anywhere near that price thats for sure!

Asura · 03-09-2006, 10:20 PM

..There goes my hopes and dreams..
-waves a white flag-
..Just have to wait 360 to drop its prices.. T-T

Seigfreid · 03-10-2006, 01:15 AM

DON'T GIVE UP ASURA WE CAN STILL WIN! With our hearts strong and our will mighty we will overcome such sadness and bring forth the beuty that is courage and honor we will fight to the very end and we...will...win! That's right we will win in the end, becuase our hearts are pure and opur will is strong we will overcome the darkness and hatred that is them and we will triumph!

Asura · 03-10-2006, 01:36 AM

Strong hearts and mighty will don't fill thy wallet..

Dark Drakan · 03-10-2006, 03:22 PM

Quote:

Originally Posted by Seigfried

DON'T GIVE UP ASURA WE CAN STILL WIN! With our hearts strong and our will mighty we will overcome such sadness and bring forth the beuty that is courage and honor we will fight to the very end and we...will...win! That's right we will win in the end, becuase our hearts are pure and opur will is strong we will overcome the darkness and hatred that is them and we will triumph!

Pure Sony fan then huh, i have no preference to Microsoft & Sony and always buy both of their consoles but have to say i play on my Xbox and 360 much more than my PS2 these days.

Quote:

Originally Posted by Asura

Strong hearts and mighty will don't fill thy wallet..

thats was a good one.

Seigfreid · 03-10-2006, 10:26 PM

I'm not a fanboy, just was hyper at the moment. I am going to buy both consoles but I'm going to wait for more good games to come out the 360. Mainly: N3(if it ever does cross the border), Fable 2, and probably Final Fantasy 11.

Dark Drakan · 03-11-2006, 08:41 AM

Quote:

Originally Posted by Seigfried

I'm not a fanboy, just was hyper at the moment. I am going to buy both consoles but I'm going to wait for more good games to come out the 360. Mainly: N3(if it ever does cross the border), Fable 2, and probably Final Fantasy 11.

I see lol, yeah the really good games have yet to come out on the 360 i agree. Im still waiting for them myself, though i thought Fight Night Round 3 looked good ( GFX are amazing) so i ordered it (should arrive today or Monday). That might keep me entertained till Elder Scrolls Oblivion comes out in afew weeks

Kato Si · 03-20-2006, 06:59 AM

Quote:

Originally Posted by Dark Drakan

With all the rumours flying around about the cost and maybe losses that Sony may make on the PS3 i thought i should post some information i have found by researching the topic.

Sonys share prices have sunk 3.6 percent on predictions of $900-per-console manufacturing cost, and a 2007 release (which still isnt certain). Sonys shares dropped to 5,300 yen ($45) per share. The fall affected the entire Tokyo stock market, with the Nikkei index dropping 1.75 percent to 15,437.93 yen ($130.57). With all the delay rumours flying around Sony have suggested they make not make the Spring 2006 window and may have to wait for an autumn launch in Japan and a late 2006 or early 2007 launch in the US.

The problem points are the Sony Cell processor and the Blu-ray drive & heat-generation issues with PS3 hardware and the far from finished state of most games for the platform. The production cost of a single Cell processor will be $230 at launch, & the Blu-ray drive will set Sony back $350 per unit. However, the $900 price tag presumably includes a $100 optional hard drive, as a breakdown of component costs in the report totals just $795. If the $900 estimate is correct or even close, that means the PS3 would have to sell for around $775-$800 to maintain a $100-$125 per-unit loss similar to that of Microsoft's Xbox 360.

Good luck to Sony to get everything finished and at a price we can all afford because i for one am not shelling out that kind of cash for a console. I will wait for the prices to drop first, but this may cause Sony to lose even more money by having to drop the prices so early.

Those prices are crazy!