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This is all analyst hand-waving, but it is now believed that they PS3 will cost Sony about $900 to make and will not be available until much later in the U.S. They do, however, believe it will be so cool and so much fun and like there will be skin that can really fall off the bone when you shoot someone.

Merrill Lynch analyst Hitoshi Kuriyama believes the PS3 will really launch in early 2007 and will ultimately cost to $320, once all production glitches have been worked out, leading him to believe that the subsidies Sony places on their game hardware could force the console to fail in a challenging market.

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Sony's new PlayStation could be delayed a year [Reuters]