Sony suffers loss from sale of PlayStation 3

PlayStation 3
Thousands of people lined up and slept in the corridors of the street in US, waiting for the day to start and get their dream console, the Sony PlayStation 3.

PlayStation 3 (PS3) is the second next generation console released, over a year after the release of Xbox 360. Nintendo Wii will be released soon too. While Xbox 360 has already scooped up the majority of the next generation consoles, Sony and Nintendo is not going to let fate decide itself.

The PlayStation 3, powered by multi-core Cell Processor, nVidia Reality Synthesizer and high definition Blu-ray drive. The selling price? US$599 for the 60Gb model, while US$499 for the 20Gb model. Reports show that Sony is suffering heavy losses in the sale of PlayStation 3. The manufacturing cost of the lower end PS3 is US$806 – Sony suffers a loss of US$307 per unit. The higher end model, with Wi-Fi connectivity and memory card slots, make Sony loses US$240 per unit.

As the PS3 looks more like a powerful supercomputer in the consumer market, the components of the console doesn’t come cheap. The Cell processor from IBM costs US$89, the RSX graphics chip from nVidia costs US$129 and the Blu-ray drive costs US$125.

Microsoft too, suffered loss from the sale of Xbox 360 last year. Microsoft lost US$126 per unit. Console makers usually lose money when selling their consoles, but earn from the sale of accessories and games. With a single blu-ray discs costs around US$25, PS3 games may not come cheap. However, the enjoyment factor may override the burning pockets of gamers around the world.

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