Sony to Lose $1 Billion Dollars on PS3
Merrill Lynch is reporting that Sony will lose more than $1 billion dollars on Playstation 3 within one year of the launch. They created this estimate on a basis that each PS3 will cost $500 to make, and will only sell for $399. The high costs will initially come from the cell processor, RSX chip, and Blu-Ray drive, all of which will cost a little more than $100 each. With the launch of the Xbox 360 at $300, Merrill Lynch believes that the highest and most likely price for Playstation 3 will be $399 in the US, and $410 in Japan.
