$600 PS3s, Anyone?

There’s no denying it. Sony‘s PS3 is one costly console. It has been priced at an eye-watering $600 – $300 more than Microsoft‘s Xbox, and $350 more than the Nintendo Wii, according to JP Morgan analyst Hiroshi Takada. Some fans who await its release seem to have been disheartened by its hefty price tag. Even game developers agree it is quite expensive.

But it seems that Sony is the one who’s going to suffer the most. As much as $2 billion might go down the drain in PS3s’ first year, says Yuji Fujimori, an analyst for Goldman Sachs. Manufacturing costs amount to more than $750 for this lean machine.  Howard Stringer, Chairman and Chief Executive Officer of Sony Corporation of America says that “the price of the PS3 is high, but you’re paying for potential.”

Thing is, consumers may not be too eager to spend that much for “potential.” Takada predicts that Sony might have to resort to slash its price to attract more buyers. Game advertisements and downloads (not free, mind you) are more like what Sony has in mind (to gain more revenue), however.

Gaming enthusiasts the world over are keeping their fingers crossed that Stringer will follow Takada’s advice. Let’s see how things shape up.

There’s no denying it. Sony‘s PS3 is one costly console. It has been priced at an eye-watering $600 – $300 more than Microsoft‘s Xbox, and $350 more than the Nintendo Wii, according to JP Morgan analyst Hiroshi Takada. Some fans who await its release seem to have been disheartened by its hefty price tag. Even game developers agree it is quite expensive.

But it seems that Sony is the one who’s going to suffer the most. As much as $2 billion might go down the drain in PS3s’ first year, says Yuji Fujimori, an analyst for Goldman Sachs. Manufacturing costs amount to more than $750 for this lean machine.  Howard Stringer, Chairman and Chief Executive Officer of Sony Corporation of America says that “the price of the PS3 is high, but you’re paying for potential.”

Thing is, consumers may not be too eager to spend that much for “potential.” Takada predicts that Sony might have to resort to slash its price to attract more buyers. Game advertisements and downloads (not free, mind you) are more like what Sony has in mind (to gain more revenue), however.

Gaming enthusiasts the world over are keeping their fingers crossed that Stringer will follow Takada’s advice. Let’s see how things shape up.