PS3 Informer

More concern over PS3 pricing, Blu-Ray

Two recent articles, from Ars Technica and CNN Money, discuss potential problems with the pricing of Sony's upcoming PlayStation 3. Ken Fisher's article for Ars discusses whether the built-in Blu-Ray of the PS3, considered a key in the electronics giant's plan for resurgence, is a blessing of or a curse. Fisher notes "For Sony, it's not optional. You want a PS3, you get Blu-ray. In some ways, this is a great deal if you switch that equation around to, 'You want Blu-ray, you get a PS3.'"

The article at CNN Money looks at the situation from a different point of view, but concerns itself more with the potential losses that Sony will incur based on analysts expectations. Still, it is believed that success of the PS3 will lead to success for Sony and its Blu-Ray disc format.

Along with a hard drive, memory chips, and other costs, Merrill Lynch says, Sony's bill of goods for each PS3 could be more than $715.

If those numbers are correct - Sony declines to comment - and if Sony hits its target of shipping four million PS3s by the end of the year, Sony could lose close to $1 billion this year on the hardware alone, adding to huge costs for PS3 development and marketing.