Sony PS3 to go for $400?

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Major analyst Merrill Lynch Japan has come up with some interesting predictions about the price of the new PS3: apparently, based on the prices of the components going into Sony‘s wunderkind, the PS3 is going to set Sony back $490 dollars per unit. Merrill Linch reckons that Sony’s going to try and flog the PS3 for about $400 in the states, which means that Sony stand to lose a whopping $1.18 billion during the first year, even more if the Xbox360 lowers its prices to compete. Even though it is usual for console manufacturers to lose money on hardware, this would mean that Sony’s set to lose more than twice what it lost during the first year of the PS2’s launch (around $579 million).

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Chris Cornwell