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Xbox to cost half as much as a PS3 by 2006?

Posted in Hardware, Microsoft, Online, PS3, Previews, Sony, Xbox 360 by admin on November 11th, 2005.

The Microsoft Xbox 360 release strategy is a devilishly clever one: to bring their Xbox 360 consoleto the market a full year before the PS3, so that it can be sold for half-price when Sony finally releases their PS3. That is, according to analyst Merrill Lynch.

The biggest reasons, according to their breakdown, concerns the CPU and the Optical Media Drive. At launch, they estimate Sony’s system costing $495 to manufacture, compared to the $340 for each Xbox 360. Sony is paying $75 more than Microsoft for its use of a Blu-Ray drive, and $60 for its Cell processor. With each console’s launch so far spaced out (at least 7 months, maybe more), the cost decay for the Xbox 360’s parts will lower it beyond the estimated $140 difference, and after 3 years Merrill Lynch estimates the cost of the PlayStation 3 to be $195, and the Xbox 360 $145.

If this is true, and Microsoft will drop their prices for the holiday season of ‘06, then I might just be one of the few who exercises their patience till next year.

This entry was posted on Friday, November 11th, 2005 at 12:01 pm and is tagged with microsoft xbox, release strategy, merrill lynch, xbox 360, xbox 360 release, clever one, s system, playstation 3, optical media, cell processor, 7 months, holiday season, launch, blu ray, ps3, decay, xbox, 3 years, patience, playstation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback.

3 Responses to “Xbox to cost half as much as a PS3 by 2006?”

  1. evan says:

    u liars u dam liars it will coast 699-899 dam u

  2. But which is the better console. I would pay 3 times as much for a PS3….

  3. timada says:

    Microsoft are very sneaky, I really don’t like the image they put forward with the x-box, they are always trying to simply make money, they don’t care about the gamers and the gaming community. For example the wii and PS3 have free internet access for online games but the x-box makes people pay for this service. Microsoft also like to buy game exclusives to stop other consoles from having them, In general they are very greedy.

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