Posted on 11/03/2005 6:27:28 AM PST by Panerai
Microsoft Corp. is likely to win the next round of the game console fight against Sony Corp. based on a potentially huge cost difference that could see the Xbox 360 selling for half the price of a PlayStation 3 (PS3) by the end of next year, investment firm Merrill Lynch said in a Wednesday analysis.
Based on a breakdown of the parts being used inside the two game machines, Merrill Lynch said the “PS3 will not only be significantly more costly than Xbox 360 at launch, but will continue to operate at a cost disadvantage for several years.”
The investment banker said Sony’s PS3 is an impressive machine, but the costly components inside could raise the price of a PS3 to around US$500 when it launches in the spring of 2006. By then, the Xbox 360 could be selling for US$249, Merrill Lynch estimated.
Sony Computer Entertainment Inc. could not be reached for comment due to a public holiday in Japan.
Microsoft has announced two versions of the Xbox 360, a basic version for US$300 and a premium edition for US$400.
The lower cost could put as many as 10 million Xbox 360 game machines into users’ hands by the end of 2006, said Merrill Lynch.
“As volumes ramp up, Microsoft should see an improved ability to lower hardware costs,” said Merrill Lynch, making the Xbox 360 an even better deal for users. It would also encourage game developers to put their latest titles out more quickly, to capture the huge audience.
The biggest cost issue for the PS3 is the Cell processor, Merrill Lynch said. Although Sony hopes the new microprocessor architecture could find its way into many new products beyond just the PS3, thereby lowering its per chip cost, ....
(Excerpt) Read more at macworld.com ...
I will just get both. Have a console collection already. May as well add to it.
Sony will take a loss to keep market share, guaranteed, and make it up on licensing. I think Merrill has overstated the case.
Ping
You would think these "experts" would have a freaking clue...
PS3 to cost 500 bucks?!
LMFAO.
I'll have sex with Helen Thomas if true LOL
Absolutely agree. Sony has a commanding lead in market share, they are not stupid. They will adjust; they will NOT sacrifice market share. They can't afford to. Also, to serious gamers, performance matters along with title availability. Sony will have the edge. I concur, I think the case here is being overstated.
Sony dropped the ball by waiting till next Febuary to release its console. Just so they could make sure their console has a better graphics chipset in it.
They miss an entire christmas shopping season, and the thunder will already be gone for Christmas 2006.
Playstation has loyal fans and I'm sure it will do well in Japan, but when it comes to america, which is the bulk of their potential sales, the blew it.
MY EYES... MY EYES
I think they have too much invested now to cancel or change the PS3 (at least I hope so). The tech in that machine is awesome!
What an odd review..no analysis of which product is better or which will more or better software. I wonder if Merril would review cars like that.
It is my understanding Microsoft put a lot of their development into XBox Live and that is where gaming is headed anyway. With better online play and a cheaper price if they could get more titles they could seriously cut into Sony's market share.
I disagree. When FF-XIII or GT5 comes out, the PS3 will sell like hotcakes.
Indeed that is a problem. Moreover, the planned launch is Spring 2006, the worst time to launch, IMO. Spring is when people begin to shift their focus away from indoor activities to outdoor stuff. This may mean that the PS3 will see a long slow launch untill the fall and Christmas 2006 season when sales could take off. Kind of dangerous. Even the Nintendo Revolution is being launched in the early Fall of '06, I believe.
Exactly right, as an intense BF2 player, I know gaming is rapidly moving in this direction.
Well, I for one will be buying a PS3. Have a feeling there are a lot of folks like me who are glad they are making it as advanced as they possibly can.
Sorry ~.^
I have a sneaking suspicion that Final Fantasy 7 will launch with the PS3, along with Gran Turismo and Metal Gear.
(You heard it here first)
This info will be strategically released.
Those people who currently have a PS2, and are active in the gaming market (meaning they buy a game every 4-8 weeks) have their eyes (and mind) on the PS3.
That is a lot of people, and I would bet a large bulk of them won't be swayed over to 360 because of online, or a release date that is 6-8 months earlier.
Also, I have found that a significant percentage (not scientific) of current xboxers are less than beaming with "OMFG-ness" over 360..
Sony will remain #1 Imo.
(And rightly so :p)
no problem dude, I just scheduled a cornea transplant after the damage caused by helen thomas --OUCH--
Um, have you taken a good look at Ms. Thomas? By the time the PS3 hits the market, you may have to dig to make good on that promise.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.