February 18, 2006

Merill Lynch Predicts a Delayed $900 PlayStation 3

Posted in General at 6:58 pm by corneliusw

A recent report from Merill Lynch indicates that the Playstation 3 could be delayed until 2007 in the United States, and may cost up to $900 at launch. All the information below is based on the released Merill Lynch PDF.

Merill Lynch predicts the PS3’s 2007 launch in the United States based on an inside colleague and also states that the PS3’s Blu-Ray drive and Cell processor are the reasons behind the increased cost of the Playstation 3.

“In particular, Sony’s decision to implement an ambitious new processor architecture – the Cell – not only took a great deal of design effort, but also has resulted in a processor that we think will cost Sony at least $230 per unit initially.”

“The Blu-Ray drive also looks expensive at an estimated $350, and Sony will not be able to leverage off additional Blu-Ray shipments in DVD players because the standard is still so new.”

Below is a graph that is shown in the PDF, which actually adds up to $800 for an unexplained reason.

If the Playstation 3 were to be delayed in 2007 for a price of $900, it would guarantee a success with Microsoft’s Xbox 360 because of its one year advantage. Not only that, the Revolution which has been stated to become before Thanksgiving would sell like hotcakes if priced under $250.

Then again, it’s hard to predict what is going on in the future, and many gamers believe analysts support this information with little backing or knowledge. Not only that, but Sony has also hinted on a $400 PS3 when Xbox 360 came out, meaning that a price of $900 is farfetched, or that Sony will be taking a bigger blow then we expected.

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