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Re: Sony Defends Cost of the Linux-Powered Playstation

begin  oe_protect.scr 
Ray Ingles <sorceror@xxxxxxxxxxxxxxxxxxxxx> espoused:
> On 2006-06-27, Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> wrote:
>>>> __/ [ Larry Qualig ] on Monday 26 June 2006 19:20 \__
> 
>>>>> Sony will also be selling the PS3 at a loss.
> 
>> Thanks for the correction. I was very surprised myself. That violation of
>> truth is one for my books. *smile* Larry pointed out some mistakes I made in
>> the past, so I guess we're even now.
> 
>  Um, no, from everything I've heard Sony will be selling the PS3 at a
> loss, too. The Blu-Ray drive alone will pump the cost up massively. (The
> first Blu-Ray player is out now at $1000, and it doesn't play games.)

This price does /not/ represent the cost, it represents the price which
the manufacturers believe the "early adopters" will be prepared to pay.
Within two years, the price will be less than half that, within four
years, it will be 20% of that, declining over the remainder of the
decade to 10% or less.  Consider that DVD players now cost < £20 here!

Consider a little deeper - what's the difference between a blu-ray
player and a blu-ray player which is also a games console?  Very little
indeed, if you think about it very hard.  Everything is a computer, now.

> 
>  It is indeed the nature of the console industry; you sell the consoles
> at or below cost, and make the profits on selling licenses to game
> companies to develop software for them.
> 

I know Microsoft have done this, but I'm not so sure that Sony have.
Sony have many years of experience in the incredibly tight-margin consumer
industry, and know how to get their production costs managed properly.
Microsoft do not.

-- 
| Mark Kent   --   mark at ellandroad dot demon dot co dot uk  |
Kiss a non-smoker; taste the difference.

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