PlayStation 3 delayed a year?

Post ImageLots of PlayStation 3 news lately, and most of it is not good if you’re pulling for Sony in the gaming wars. Apparently Sony is planning a Hub service to compete with Xbox Live, but confirmations have been difficult to get, leading me to believe it may just be posturing on Sony’s part. The worst news though is about extremely high prices and potential delays:

Sony’s next-generation PlayStation 3 video game console might not appear in key markets this year and could cost the company $900 per unit to produce initially, according to Merrill Lynch analysts quoted in the Financial Times on Sunday.

Merrill Lynch analysts in San Francisco have estimated that the initial bill of materials for PS3 could approach $900, falling to $320 by three years after launch, the FT said.

Keep in mind those figures are in US dollars. I said a long time ago that the PS3 would likely cost an arm and a leg, so this story is validation. You just can’t introduce so many new components and expect the price to remain the same – the cell processor, coupled with Blu-ray drives are going to drive the cost of manufacturing quite high.

I don’t think Sony has extremely deep pockets like Microsoft, so I can’t see them taking a massive loss on each console. Hopefully we’ll find out more soon.

Read: CNET News.com

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