Blue Laser Costs Coming Down; Could PS3 Price Cut Be Far Behind?

Sony is ramping up blue laser diode capacity for its Blu-ray players much faster than we anticipated, and the costs are coming down. A price drop on the PS3 this year is starting to seem more and more likely. Wedbush Morgan analyst Michael Pachter tells GameDaily BIZ that PS3 could cost 100 dollars less by mid-year.

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ITR4192d ago

I doubt it. Sony is just trying to make a profit on the PS3 now.

iSuppli said Sony loses $125 on each console it sells.

If they gain $42 on the console, then why would they cut another $100 off of it?

Thats going backwards instead of fowards.

techie4192d ago

isupply were wrong. WHen they are producing so many ps3's the price had already gone way down. Oh and they're making a little bit of money on the PAL ones. Wont be long. Christmas at the latest :)

Firewire4192d ago

The cost of producing PS3's has already come down like Deep said. Also because there isn't the emotion engine in the PAL PS3's the price to produce the European version has come down.
This plus some other cost coming down will I think allow Sony to drop the price possibly by $100 this summer. I also see another $50 to $100 dollar sale happening in the holiday season. All in all with more games coming out , and price drops the PS3 could be in good shape after the holiday season!!

Wargasm4192d ago

I had no idea that the Ps3 was getting near to breaking even. Last time i saw official numbers on the 3 consoles, it was nintendo banking 50 a pop and the 360 was losing about $90 and the Ps3 was losing $150.

i don't know if Sony will make a 100 dollar price cut, or whether they can afford to... but they should

TheExecutive4192d ago

no way. the reason is that they are/were taking huge losses on each console sold. They did this so that gamers could get everything included in the console for fairly cheap. They wont drop the price until they make some money back. The price will stay consistant for some time.

hfaze4192d ago

Don't forget that Sony is still making money hand over fist with the PS2, and the manufacturing cost per unit on the PS3 is dropping like a rock.

With the blue laser diode breakthrough that Sony has made, along with mass manufacturing the Cell CPU on a 65nm die (with 45nm production probably ramping up sometime late next year), and the improving software backward compatibility allowing Sony to drop the Emotion Engine hardware from the design, the cost to manufacture a PS3 has come down significantly.

I would bet that Sony would give a $100 price drop by this Christmas to make some significant headway on their install base, which will make the PS3 that much more attractive to third party developers. I just hope they don't decide to keep the price where its at until '09... It would make more sense from a cost recovery perspective, but it will still remain to be a BIG barrier to people wanting to get a PS3.

masterg4192d ago

Its always better the lose money on a consol if it means more gamers to buy the games.

Frulond4192d ago

I don't think they will cut the price just yet. As they stated before a price cut will come in 2009 with the new smaller model. They need to make some money back and I bet they are waiting to see how many more consoles sell once the big titles and "home" are out.

DrWan4192d ago

Price drop has more to do with just seeing if you are making money or breaking even. It has to do with the global strategy as well.

They need to analyze the price of MS and Wii to see if they can price drop, even if they are to lose some money they will do it if it outweights the opportunity cost of losing money for higher install base and a higher numbers of game sold. It's more than just retail price vs. production cost... They have experets doing projections and calculations and predictions in order for a price drops to happen.

ITR4192d ago

If Nintendo dropped the Wii bundle could get a Wii for $210+- like in Japan.

Sevir044192d ago

Christmas will be big with the huge titles but that price cut seems very fiesable. Considering that the EE chipset is removed and, that the new 65nm Cell chips are being produced. not to mention the revealation of this new Rumored 80 gig ps3 model that both kotaku and Gizmondo both got pictures of late last night. if anything is to be know... i think that a hundred dollar price cut is definately on the way. the may drop the 60gig to 499 or even 399 to stay competitive and the offer this rumored new 80gig model at 499 or 599 making the six gig seem even more appealing. Sony really knows that our pockets are hurting and is really really wants to more ps3's in homes. They are trying every means nessessary to drop cost productions on this system so they can start making major profit... by summers end i'm guessing that ps3 will be shipping with the 65nm cell chips. that will more than justify the price cut right around christmas that will prolly piss off all the early adopters, but will coinside with big release games like uncharted, R&C, Tekken, Killzone, HS, GT5 Lair, and MGS4 and Codedarms Assault, Warhawk, and Maybe even Wipeout. Then ofcourse there is HOME. Sony has some big plans for tis year. and everyone one wants this system to sell. this bodes will. like alot have been saying Sony's big coming out part is fall-winter 07 not the 06 launch.

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