I expect these components will go down in price and Sony is betting on this; companies are usually well aware of how much components will cost for the next few years in accordance with price erosion, and considering Sony is a massive force in the market, they're going to force component companies to drive the price even lower. So, 900 now, but probably 500 in early 2007.

I think the call was $900 to make. Sony is expecting to make a loss on each unit, and make the money back on software and perifs. Standard procedure really. I think the way the PS3 will pan out will not be too far removed from the 360, release (expensive), lots of the hardcore will snap them up and then ping them off on eBay for three to four times the price. The initial teething glitches will show, get fixed and then by the time next seasonal (ie Christmas) sales come around the price of the unit will have dropped by about a 3rd. Then my friends, it will be game on!

where do you guys get your icons? i love the little shirt made out of money. Anywayz, i wonder how much money and how many potential customers sony has lost because of the delay. I bet sony know (pretty accurately too), but i guess they dont care enough to try and speed up the release.

About price drops over time - that's what the article said, to an extent. They're projecting that it'll still cost $320 to make even after 3 years... But I agree it's not clear whether the $900 applies to now or to 'when it's actually released' (in Japan), let alone US or European release dates. The interesting factor is that even according to the higher - unsourced - reports that I found after a quick google, x360 only costs $715 to make and that's right now, not even 'spring' let alone autumn/next year. http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-ma... Two ways to look at this, (1) bad news for Sony as they'll have to subsidise their console more (even if they also charge $500 for it), or (2) great news for PS3 customers as you'll get $900 worth of kit for a lot less than $900 :) Well, and (3) these are only predictions/estimates so who knows, it could all be rubbish. Does anyone have equivalent numbers for PS2 manufacturing cost at launch?

I would agree Steve that Sony expected to take a loss, but if these figures are right, I can't see Sony take a loss that BIG on each unit. I believe PS2 at launch had a $100 a unit loss. If Sony launches at $500, you are talking a $400 per unit loss. Sony has money, but they aren't Microsoft in regards of liquid assets. We will know soon; If the $900 tag is right then you might see them delay launch just to get to lower manufacturing, although missing Christmas to me is not good business. I wonder if they are getting subsidized on the Blu-Ray drives by the other Blu-Ray people. If M$ can heavily push their HD-DVD drive and PS3 gets delayed, it could spell trouble for Sony. It seems like Sony either has a brilliant plan in place to bamboozle everyone OR they are underestimating the cut throat tactics of Microsoft. The last thing Sony needs is for PS3 to launch in Spring 2007 when a little game called Halo 3 could be out. It is an interesting battle to watch... afterall, we have seen M$ go from little market share to total dominance in many products... they use cutthroat tactics to win... Server, Desktop OS, Internet Browser, Word Processing and office software... all of these others had the advantage and Gates crushed the competition. This will be a fun battle to watch.

I will say I question the $900 and $720 figures. They can guess on wholesale costs, but with the leveraging power M$ and Sony have, so we actually think that they are simply paying wholesale. You know they are getting some components cheaper and probably some stuff free. I believe both will take a small loss, but M$ is confident (to the press) that the hardware will be profitable by the end of 2006 to 2007. I still think these numbers are a little high and frankly there is no way to verify them unless M$ actually admits to it.

All othis is just hype, partially fueled by Sony, to set people's expectations very high. Remember when initial expectations of the PS2's price were upwards of $700? What did the PS2 launch price go for? $299? Yeah. PS3 is surrounded by a reality distortion field.

Id much rather wait a year for the PS3, and pay a relatively normal price. Blu ray for $350? Where they buy them from? - Nice shirt - Heres how to make one out of a dollar or anything rectangular - http://www.tammyyee.com/origamishirt.html

I remember the initial launch price of the Playstation (ie PSOne) and that was around $1000 New Zealand (yes I am from there, and no I don't know any sheep personally). I don't believe that the inital sales of the PS3 are going to take a massive hit, even if the units are selling for a couple of hundred more than the 360s release price. We seem to forget that people were buying the 360s off eBay for absolutely rediculous amounts. From my perspective this shows that there is a large enough segment of the gaming community with the money to spend. Long term, ie a year down the line... thats going to be the telling...

jrghoull http://images.google.com/images?svnum=10&hl=en&q=dollar+or... It funny...can't find any other people doing this with their currency!

"three to four times the price" 1.5 to 2.5 times the price realistically. Unless there are drastic shortages.

Powers: Sorry, just over-exaggerating to emphasise my point, that being that there will be enough people in the market with the disposable income to initially support a high price. KsprayDad, I suspect it is because the majortity of the western world has realised the merits of disposing of such low denomination notes. Not the Americans it seems... the dollar bill is something of an institution, albeit a much folded one :)