Killah Priest - New Album out now!
home
news
wu-tang clan
bio's
media
store
blogs
forum
contact

Go Back   Wu-Tang Corp. - Official Site of the Wu-Tang Clan > The Elements > Digital Underground

Reply
 
Thread Tools Display Modes
Old 09-15-2005, 04:07 PM   #16
PHI.1.618
Guest
 
Posts: n/a
Default Re: next gen media thread

PS3's gonna cost $399.99 & them shits cost $494.00 to make ...lol





Merrill Lynch Japan predicts Sony will lose more than $1 billion on hardware during its next-gen console's first year on the market--a sum it may not be able to recoup.
According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006.


Merrill Lynch Japan estimates that the machine's main components--namely its Cell chip, RSX, and BD-ROM drive--will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine's production cost goes up to 54,000 yen.

Given that Sony's PS3 will face stiff competition from Microsoft's Xbox 360, the chances that Sony will release its console at its production cost is slim. Under the assumption that the Xbox 360 is expected to sell at around $299, Merrill Lynch Japan predicts that Sony will sell each PS3 at the price of 44,800 yen ($410) in Japan and $399 in America. That would mean Sony would suffer a loss of more than 130 billion yen ($1.18 billion) during the first year of the PS3's release.

By comparison, the PlayStation 2 cost 39,800 yen ($364) in Japan and $299 in America when it launched in 2000. During its first year of release, Sony Computer Entertainment suffered a loss of 51.1 billion yen ($458 million), but it recovered the next year with a profit of 82.9 billion yen ($759 million), followed by 112.6 billion yen ($1.03 billion) the year after.

It is normal for game companies to take a loss on hardware whenever a new console launches, since they typically focus on acquiring market share rather than generating a profit during the first year. During the second year and afterward, they can recover the losses with the savings that come from mass production and with licensing fees from publishers.

However, Merrill Lynch Japan warns that the normal console business cycle may be disrupted if Microsoft cuts the Xbox 360's price when the PlayStation 3 launches. The report goes on to say that such a move could hurt Sony's plans, bringing an additional loss of 80 billion yen ($730 million) in its second year and 50 billion yen ($457 million) in its third year. Thus far, Sony has already invested 200 billion yen ($1.83 billion) into development and production for the Cell chip alone.

Toyo Keizai goes on to interview Sony Computer Entertainment president Ken Kutaragi, who avoided revealing the PS3's price but hinted that it would not be marked down excessively. "Whether consumers think a product is expensive or cheap all depends on the balance between its appeal and price," he said. "Our ideal [for the PS3] is for consumers to think to themselves, 'OK, I'll work more hours and buy it.' We want people to feel that they want it, no matter what."

"When Nintendo was selling its 16-bit machine at around 12,500 yen ($114), we sold the first PlayStation at 39,800 yen ($364)," continued Kutaragi. "The press was saying that it was expensive, but it was a huge hit. It's the same thing with the PlayStation Portable from last year. The Game Boy Advance is a same handheld gaming machine, and it costs less than 10 thousand yen ($91). On the other hand, our PSP had cost 25,000 yen ($229). But people lined up overnight to buy it, and it sold out on the day of its launch. It all depends on whether people want it. Of course, I'm confident that the PS3 is a product that people will definitely want."
  Reply With Quote
Old 09-15-2005, 04:25 PM   #17
Wu-Tality
Metal Gear
 
Wu-Tality's Avatar
 
Join Date: Jun 2005
Age: 26
Posts: 1,684
Rep Power: 12
Wu-Tality grasshopper
Default Re: next gen media thread

I agree on that, people will buy it anyway, it might be risky but the chance it wont sell is sooo small. And in return we get a fine piece of hardware, and they rely alot on quality of games this way, which cant be bad either.
__________________
Wu-Tality is offline   Reply With Quote
Old 09-21-2005, 05:44 PM   #18
Bloo
Da Main Gatdamit!!!
 
Bloo's Avatar
 
Join Date: Apr 2003
Location: The Slums of the Souf
Age: 32
Posts: 3,398
Rep Power: 18
Bloo drunken mastaBloo drunken mastaBloo drunken masta
Send a message via MSN to Bloo
Default Re: next gen media thread

Hmmm... Not impressed...

Only next gen game that seems promising so far is Alan Wake

But whatever goes down. I'm definately getting whatever system Silent Hill 5 is on.
__________________
Still Ain't Nuttin Ta Fuk Wit
Bloo is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Other than hip hop.. Scissor-Hands General Chat 23 11-20-2012 09:40 AM
How Much I love pussy WARPATH General Chat 16 04-10-2009 05:03 PM
HipHop/Rap Music Video Thread younguru Hip-Hop Shop 64 07-17-2006 01:48 PM
New Track "Depression" Rebel_INS Temple Of Darts 2 07-07-2005 09:16 AM
hey Born an Shrap.....check it out! Sicka than aidZ Graphics Corner 1 06-14-2005 03:17 AM


All times are GMT -5. The time now is 07:35 PM.


Copyright 2000 - 2013 The Wu-Tang Corp. & shift-one