PlayStation 3 Breaks the Bank

Saturday, February 25th, 2006

From PlayStation 3 Breaks the Bank:

In the videogame business, hardware makers generally sell new consoles at a loss, making their profits by charging licensing fees to videogame publishers. But according to an analysis by, Sony is paying an unusually steep bill for its upcoming PlayStation 3 console. The system’s components cost between $725 and $905, analysts estimate. The biggest culprit: Sony’s new Blu-Ray disc drive, which will play high-definition movies as well as games. With the PS3 console expected to sell between $299 and $399, Sony will lose hundreds of dollars per console.

Don’t be too surprised if the hardware hackers buy it for its parts.

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