PS3 party pooper Merrill Lynch says Sony will lose

ken kutaragiMerrill Lynch remains unmoved by the global clamor bordering on adoration for the PS3. The investment firm remained, well, firm on its dire forecast about Sony‘s upcoming financial disaster from its PS3. Merrill Lynch estimated that Sony‘s next-gen console debacle will result in a 5-year total operating loss amounting to US$6.3 billion.

The good news is the prediction came out before the sparkling debut sales performance of the PS3 in Japan.

More good news: previously, ML predicted that it would cost Sony US$900 to create a PS3 which would result to an unaffordable price tag. Eventually, ML mused, the PS3 price will go down to a more sane level on its third year. Something to the tune of US$320. ML analysts got that wrong.

Today, we know the price in Japan is around US$507 for the 60GB version. And even then it generated 62% of the PS3 sales. In other parts of the world, the PS3 pre-orders have all been snapped up. GameStop sold-out on pre-orders on its first day. Although we know nothing about how the financial world of the big guys operates. But from our point-of-view, it doesn’t look all gloom-and-doom for Sony. So let Sony pop the champagne for now. We think they’ve earned it.

ken kutaragiMerrill Lynch remains unmoved by the global clamor bordering on adoration for the PS3. The investment firm remained, well, firm on its dire forecast about Sony‘s upcoming financial disaster from its PS3. Merrill Lynch estimated that Sony‘s next-gen console debacle will result in a 5-year total operating loss amounting to US$6.3 billion.

The good news is the prediction came out before the sparkling debut sales performance of the PS3 in Japan.

More good news: previously, ML predicted that it would cost Sony US$900 to create a PS3 which would result to an unaffordable price tag. Eventually, ML mused, the PS3 price will go down to a more sane level on its third year. Something to the tune of US$320. ML analysts got that wrong.

Today, we know the price in Japan is around US$507 for the 60GB version. And even then it generated 62% of the PS3 sales. In other parts of the world, the PS3 pre-orders have all been snapped up. GameStop sold-out on pre-orders on its first day. Although we know nothing about how the financial world of the big guys operates. But from our point-of-view, it doesn’t look all gloom-and-doom for Sony. So let Sony pop the champagne for now. We think they’ve earned it.

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