Sony ‘to make $100 loss on every PS3’

June 30th By Neil Long

A new report from analyst Merrill Lynch Japan suggests that Sony’s PS3 will launch at $399, despite costing up to $490 to manufacture.

The prediction is based upon speculation that Sony’s Blu-Ray drive, Cell chip and RSX processor will cost around $100 each, with the rest of the components totalling around the $490 mark.

If the figures are correct, Sony will make a huge $1.18 billion loss on year one sales if Sony reaches its 14 million sales target. The discrepancy could lead to a loss of a further $1.2 billion in year two if Microsoft slash the price of Xbox 360 and force Sony to drop its prices.

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