Next Generation Hardware Cost Comparison

if you haven’t read this report from cnet, it’s looking to be a lot more grounded than that trash that was the infamous “merril lynch” ps3 cost estimate.

the final cost breakdown?

Total: If you use the low-end figures for Cell ($150) and the Blu-ray drive ($200) the PS3 materials bill comes to $700. The high estimate, including a $230 chip and $300 drive, comes to $880. The average is $790. The Xbox 360, meanwhile, comes in at $476 through averaging prices from different analysts. A study from iSuppli puts the figure at $525.

basically, it comes down to the manufacturing cost of the 360 + $250.

at $10 in royalty sales per console, that’s an ADDITIONAL 25 games for their game-to-console attach rate.

goooooooo sony!

blu-ray is so gonna sink the ship that is sony.


16 comments so far

  1. m3mnoch on

    man. i can’t wait for the ps3 to come out. just so i can say a simple “i told you so” and go back to writing about REAL game design issues.

    i’m getting so tired of this ps3 speculation crap. i just can’t get over how braindead the idea is.



  2. Oncnawan on

    Obviously, Sony is going to take a huge hit on each console shipped. If the PS3 ends up with hardware issues similar to the PS2 (multiple types of hardware failure), Xbox (Thompson drive), and Xbox 360 (overheating/freezing problems), the hit to revenue will be even greater. The real question becomes, can Sony hang in the game long enough to lower the cost of their hardware and recoup their current hardware losses through software and movie sales? Without the Blueray drive, the answer would be a resounding “YES”. With the Blueray drive? I am not so sure.

    As an issue of cost and hardware reliability, the Blueray drive is a liability to Sony (Sony takes a larger hit per console due to its inclusion and it is more likely to fail/have issues than a DVD drive). What assets does it bring that offset these liabilities? Possible domination of the next gen disk format, which will bring significant revenue in the long term. Sony won’t be seeing significant gains from Blueray sales for a long time to come. Matching liabilities that create significant loss in the short term against assets which payout in the long term is very dangerous. If Sony does sink this generation, Blueray will very likely be the cause.

  3. Isaac on

    Well, there is also speculation that Sony won’t be losing as much, considering that samsung will release a BD-writer at a retail price of 500 dollars, and that yield rates for the Cell have been improved “faster than ever for other processor” (IBM’s words); and with one disabled SPE, sony should do just fine.

    Since we don’t know which of the reports are right, we should wait till you can say “I told you so” or “I was wrong”.

  4. m3mnoch on

    yep. “i told you so” or “i was wrong” — either way, it’ll be fun to talk about something else for a change, huh?


  5. Isurus on

    Well, we could talk about the latest Bungie update. I think this paragraph supports the theory you presented in a post a few weeks ago:

    “…was bitching at Lars, one of our new Multiplayer designer guys the other day, that he hadn’t invited me to certain “tests” of certain “things.” So he diligently invited me to them every day this week, and of course I was too busy each time. So it turns out I’M the jerk. Anyway, I did make it to one session where we played something in a social setting and it promises to be a classic example…of this type of thing. And it was all new.”

  6. Oncnawan on

    Isaac, I see your point, which is why I said “if”. I do think that, from a gaming standpoint, the inclusion of Blueray was a mistake. However, Sony is not making this decision for gamers or gaming. Sony has deigned to allow you to pay more for your console to ensure that Sony wins the next gen disk format. Woot!

    If I were a Sony fanboy I would be up in arms that Sony is elevating the interests of their hardware division over their customers under the Playstation brand. Unless you like to feel used…

  7. Isaac on


    To tell you the truth, if I am to be considered a “fanboy”, it would be Nintendo’s, not Sony’s, but anyway, I (possibly unlike a lot of people) like the fact that a Next-gen disc is included in the package. I love tech.

    Do I want Blu-ray to win? Sure, I’d like to use 8-layered blu-ray discs for storage sometime soon; I find 200 GB more useful than just 60 GB; I find it annoying to have to switch discs for watching Seinfeld on DVD. Will I have to pay a prime? By the looks of it, I probably won’t. I’ll be buying a PS3, and HD-DVD movies seem to be on par with Blu-ray movies when it comes to price, so I don’t feel like Sony is making us pay extra. Hell, PC BD burners will be 500 dollars soon, I don’t see how that is expensive.

    I know there is Holographic storage coming, but it’s considerably more expensive, and it’s doubtful that prices on those things will go down fast, let alone the fact that it will probably take them more time to become a standard. It would be easier for it if it was supported by content; which might happen if online distribution takes long, internet speeds are too slow, and programs/games keep growing in size (but for that to happen, better development tools would have to be created).

  8. […] so, you have to be a gamer, have an hdtv, want to play high definition dvds AND have hdmi connections.  then, the $250 extra for the blu-ray drive is justified. […]

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