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PS3 Will Cost $494 to Make? |

Merrill Lynch Japan has a crystal ball. A crystal ball that works quite well, it appears, and gives answers with authority. Recently they’ve had to polish it a bit because it’s been steaming up with all those Merrill Lynch people gazing at it too closely. But it gave forth some of its knowledge, and it goes like this:

1. The cost of manufacturing a PS3 will be $494.
2. Sony will sell the PS3 for $399.
3. Therefore Sony will lose $95 on every PS3 sold.
4. Sony will lose $1.18 billion during the first year of the PS3’s release.

My question is, what will the Merrill Lynch people due when they discover that the crystal ball has been giving less than crystalline answers? You don’t think it’s right, do you? For surely, it is highly unlikely that predictions as precise as these will actually end up being accurate. So what will Merrill Lynch due with a useless crystal ball? Maybe they can lend it to Microsoft, since I don’t think they forsaw that they’d still be in the red on the Xbox today.

Link: GamespotReport: PS3 to sell for $399, cost $494 to make

  • Glen

    M$ makes over $10 billion more a year that gose back in to things like the XBOX.. M$ did not lose money on the XBOX they spent money on it.

    If this is true i did read that sony are going to fix the price of the PS3 for along time. they will make money from the PS3 with it only costs $300 to make.

    The XBOX 360 should come out at £260 in the UK people have pre orderd the system for £260 here in the UK

    Also this site

    looks like that is how much it will be M$ was in talks with shops around the world to talk about a price so they should now by now.

    So when the PS3 comes out you can get a XBOX 360 for £200 or a PS3 for £400