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Is Sony Willing to Lose $100 for Each PS3? Sections of the manual "how to sell and not render profit"	By 29th of June 2005, 17:50 GMT Adjust text size:

After the commotion caused by the technical specifications of Xbox 360 and PlayStation 3 quitted down, now it's time for your favorite show: The price is right. Merrill Lynch Japan started to make some calculations and got to the conclusion that a price for a Play Station 3 is somewhere around $494. Considering that Xbox 360 will have a price tag of approximately $299, it would be logical for Sony to try and sell a PlayStation 3 with $100 cheaper if it wants to be competitive. In conclusion, if Sony adopts this policy and sells Play Station 3 for $399, given the number of units produced in the first year, the company would lose $1.18 billion dollars. In addition, if we also take in consideration that Microsoft will launch Xbox 360 ahead of Sony and it's likely that the company will lower the price when Play Station 3 is launched, it would mean another hundreds of millions lost. Truth is that all these computations are interesting, but let's not forget that after all, no one knows in whose favor the price/quality balance will tip. Beyond these figures, Sony launching Play Station 3 after Microsoft will allow the Japanese company to learn from the mistakes made by the giant from Redmond.

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