PS3 Takes Games, Prices to Next Level

Perhaps the reason Sony keeps calling it an entertainment supercomputer is because it wants to minimize sticker shock.

Sony wowed everyone at E3 with its impressive demos for the PlayStation 3, instantly making it a highly desirable piece of tech. But all that power is not going to come cheap.

Estimates by analyst firm Merrill Lynch Japan Securities, reported by GameSpot, suggest that Sony's new console could cost as much as ¥54,000 (£270) to make, though the firm also predicts that Sony will sell the PlayStation 3 for a loss at the lower price of ¥44,800 (£225).

Microsoft, Sony's most immediate rival, is kicking off the next generation this Christmas already. Current predictions are for the Xbox 360 to come in at around $299 (£166) in the US.

Despite the higher than normal asking price for the PlayStation 3, Sony president Ken Kutaragi is confident that people will want his new box.

"Whether consumers think a product is expensive or cheap all depends on the balance between its appeal and price," Kutaragi told Japanese magazine Toyo Keizai.

Kutaragi said that people would look past the sticker to see the quality of the hardware and the exciting new possibilities it brings, much like they did with Sony's other new games machine, the PSP.

"Our PSP had cost 25,000 yen ($229)," said Kutaragi, "but people lined up overnight to buy it, and it sold out on the day of its launch."

"Our ideal [for the PlayStation 3] is for consumers to think to themselves, 'OK, I'll work more hours and buy it.' We want people to feel that they want it, no matter what."

Alex Wollenschlaeger
Editor, Kikizo Games