PlayStation 3 to Sell For $399, Going Underground

Merrill Lynch Japan has conducted research that indicates that the PlayStation 3 will retail for $399. According to Gamespot's coverage of the paper, the unit will cost $494 to manufacture. Sony will thus be taking an almost $1 Billion loss in the first year of the PS3's lifespan. From the article: "It is normal for game companies to take a loss on hardware whenever a new console launches, since they typically focus on acquiring market share rather than generating a profit during the first year. During the second year and afterward, they can recover the losses with the savings that come from mass production and with licensing fees from publishers." Meanwhile, Press the Buttons is reporting on a Pro-G article in which SCEE Chief David Reeves states that "I feel proud that E3 went well from the presentations that they did...I feel very happy about that, but I told the troops: OK now we go underground. The PS3 goes underground until it comes out next year."

Starving Geeks

[Vonotar82]

Well, I can't say I'm that surprised at the price tag, as all new technology is rather pricey. Will that stop all the random single people from buying one immediately? Not at all. In fact, I'm pretty sure we'll see those self same buyers out on street corners with signs saying "Will max out materia for food".

WTF?!

[LegendOfLink]

The PS3 goes underground until it comes out next year.

I feel bad for the poor bastard who has to dig the hole to bury all of those units...

From TFA:

[Shadow Wrought]

Sony estimates that the aging console has only completed 10% of its lifespan in Iran. No, seriously. There's a Sony office in Iran.

I can only imagine how well GTA: San Andreas is doing over there...

Re:From TFA:

[Hinhule]

You haven't heard of GTA: Tehran eh?

Re:From TFA:

[Anonymous Coward]

Yeah, it's too frustrating though. The cops catch you and you get executed instead of just fined.

hmm taking a loss eh

[Naikrovek]

if the gave it away for free they'd have near 100% market share.. ah maybe its just me that thinks so. can anyone hear me? is this thing EVEN ON?!

Linux port

[necromcr]

I'd pay full money if it would run Linux. It would be my precious.

If that is the case...

[SetupWeasel]

Expect a launch like the PSP:

March 2006 in Japan with 100,000 units. ("We launched on time!")

November 2006 in the US with a million units ("We are focusing on the PSP")

And Summer 2009 in Europe, proscuting anyone who tries to import one.

Re:From TFA:

[Dolly_Llama]

GTA: Tehran has a neat plot that follows your development from a cheap street punk, through your time hostage taking in the Islamic revolution, all the way to your darkhorse victory as president!