PlayStation 3 component prices: Why so high?

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Microsoft's sensible decision...

... was to use a larger number of off-the-shelf products. Major technical advances appear to take major time and have substantial risks.

Just a few innovations at a time.



Many articles on the subject of games devices toss off the observation that companies lose money on the hardware but still make a net profit
on games.

The games makers, in the meantime, are squeezed by their costs enough to make industry consolidation likely. The effects, etc. appear to be making new entrants less likely.

If the hardware companies, including Sony and Microsoft, have to respond to companies which have sufficient resources and motivation to negotiate insistently, those profits per game sold are going to decline.

So expect to see either device prices rising or more interest in making certain component parts are as inexpensive as possible.

With the recent condition of Sony profit levels, I'm wondering if the company will continue to provide such substantial cash on the next version, PS 4, call it.
Whereas Microsoft might be able to put off high profitability awhile longer to add even more gee-whiz technology.

This is beginning to sound like a regular Microsoft competition.

Posted by: Anton Philidor   Posted on: 02/23/06 You are currently: a Guest | Members login | Terms of Use

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