PS3 May Cost Twice as Much as XBox 360

According to XBox Today, the Playstation 3 may end up costing twice as much as the XBox 360. This speculation comes from an analyst report from Merrill Lynch, which cites higher production costs as the main reason.

The total cost of the PS3 (to the manufacturer) is estimated at $495, while the XBox comes in at a mere $340. A major source of the difference is the Blu-Ray drive, which will cost a whopping $100. Compare that to $25 for a DVD-ROM drive, and you wonder what exactly Sony is thinking. The other major discrepancy in pricing is the processor, with the PS3’s cell processor gizmo costing $160, $60 more than the IBM PPC processor used by the XBox.

Despite the cost difference, I can’t imagine Sony would sell a PS3 for $600 (assuming they mean twice the cost of the base XBox model). That’s just too much for a gaming console. For most people, that has moved from the realm of “cool Christmas gift” to “major investment”. Sony and Microsoft both make more money on games than the hardware anyhow, so I’m thinking Sony will just end up taking a bigger hit up front in hopes that people will buy plenty of games.

My personal prediction is $400. If I’m right, maybe I should apply for a job as a Merrill Lynch analyst. Ya think?

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2 Responses to “PS3 May Cost Twice as Much as XBox 360”

  1. Ryan Says:

    when will they releace the price

  2. EmmaWoodwardedn Says:

    Free Xbox,This is good stuff. I use it realy and it is very useful. it is very cheap one with the market

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