Saturday, July 22, 2006

PlayStation 3's launch

According to Business Week, A Goldman Sachs analyst claims that Sony may lose up to $2 billion during the first year of the PlayStation 3's launch. The report claims that each PlayStation 3 will cost Sony $750 to produce while they will be retailing at $499 for the SKU with the 20GB hard drive and $599 for the unit with the 60GB hard drive.
Sony initially making a loss on each unit sold comes as no surprise as it is very common for console producers to take a hit on sales until production costs decrease- the PlayStation 2 only started raking in profits four years after it was launched while Microsoft has yet to make a profit from its Xbox series.
Sony has not made any official announcements on the manufacturing cost of the PlayStation 3 and analysts have speculated amounts from $500 to $800.
Currently known to be the most expensive console this generation, The PlayStation 3 will be launching in November this year. Its main competitors include the Xbox 360 and the Nintendo Wii.

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