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doubts about PS3 batter Sony stock

Discussion in 'Nvidia' started by Radeon, Feb 21, 2006.

  1. Radeon

    Radeon Guest


    PS3 launch, price doubts batter Sony stock

    Share price sinks 3.6 percent on predictions of $900 per-console
    manufacturing cost, spring 2007 US launch; contradictory corporate
    statements follow.

    Across the United States, most Americans were relaxing this Monday,
    courtesy of the long Presidents' Day holiday weekend. Not so across the
    Pacific in the corporate offices of Sony. The electronics and
    entertainment giant saw its stock price sink 3.6 percent, dropping to
    5,300 yen ($45) per share. The fall affected the entire Tokyo stock
    market, with the Nikkei index dropping 1.75 percent to 15,437.93 yen

    Monday's drop follows a 2.8 percent decline in Sony stock on Friday,
    after Wall Street stock-brokerage firm Merrill Lynch published a report
    skeptical of the company's next-generation console plans. It predicted
    the launch of the PlayStation 3 console could be delayed by 6 to 12
    months from its current spring 2006 window, resulting in an autumn
    launch in Japan and a late 2006 or early 2007 launch in the US.

    "We wrote last November that Sony's design choices for the PS3 had
    resulted in an expensive and difficult-to-manufacture product," read
    the report, "and we think that we're seeing the consequences of those
    choices play out now. In particular, we think the problem points are
    the Sony Cell processor and the Blu-ray drive." Merrill Lynch also
    cited heat-generation issues with PS3 hardware and the
    far-from-finished state of most games for the platform as factors.

    While other analysts have predicted that the PS3 might not hit North
    America until Q4 2006 or Q1 2007--which would miss the all-important
    holiday shopping season--Merrill Lynch's stature made many-a-trader
    skittish. The fires of unease were fueled further by another component
    of the report, which predicted the manufacturing cost of the console
    could be much higher than previous estimates of around $500 per unit.

    "Our updated analysis indicates that the initial bill of [production]
    materials for PS3 could approach $900," read the report. The report
    said that the production cost of a single Cell processor will be $230
    at launch, with the Blu-ray drive setting Sony back $350 per unit.
    However, the $900 price tag presumably includes a $100 optional hard
    drive, as a breakdown of component costs in the report totals just

    If the $900 estimate is correct, that means the PS3 would have to sell
    for around $775-$800 to maintain a $125-$100 per-unit-loss similar to
    that of Microsoft's Xbox 360. If the $795 estimate is correct, the
    console could sell for around $699--within the range recently forecast
    by a group of analysts and developers polled by CNN/Money.

    Merrill Lynch expects PS3 production costs will start falling after
    2007, when Sony can shift the Cell chip's manufacture from the complex
    90nm process to the more cost-effective 65mn process. Scaling Blu-ray
    to other devices will also bring down the drive's price. Merrill Lynch
    predicts that the PS3's production cost will fall to $320 in the three
    years after its launch, by which time the Cell will only cost $60 per
    unit and the Blu-ray drive $100 per unit.

    In the wake of the report, Sony issued a series of contradictory
    statements. In Japan, Sony Computer Entertainment spokesman Kei
    Sakaguchi flatly denied that there would be any delay to Bloomberg News
    and other press outlets, saying, "there isn't any change in our plan to
    release the console in spring 2006."

    However, a Sony Computer Entertainment America spokeswoman was more
    cautious when she spoke with USA Today. "We're aiming for spring, but
    we haven't announced specific regions," she told the daily broadsheet.
    "We're waiting for [final PS3 specifications] until the last possible
    minute, but the launch could be pushed back if they're not decided

    By Tor Thorsen, Hirohiko Niizumi -- GameSpot
    Posted Feb 20, 2006 1:39 pm PT
    Radeon, Feb 21, 2006
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  2. Radeon

    John Lewis Guest

    blah, blah, blah.............

    With the Xflop360 shipping disasters (and chronic internal overheating
    which will only be remedied by a move to 65nm early next year) plus
    your "so-called" news on the PS3, all the better for the PC gaming
    enthusiast. By the time either of these console-turkeys can ship in
    quantity, their hardware will be obsolete. Next-gen PC graphics just
    around the corner, with nVidia and ATi still battling, plus X-Fi
    audio and Vista/DX10 before the end of 2006 PC gamers have
    never had it so good.............

    John Lewis
    John Lewis, Feb 21, 2006
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  3. Radeon

    Chris F Guest

    yeah, it must be a riot paying £300 every six months and not having
    any games which push your hardware to its limit...
    Chris F, Feb 21, 2006
  4. Pity about the lack of games.

    Sir Chewbury Gubbins, Feb 21, 2006
  5. Show me where it states that Vista is the answer to the gaming gods?
    Brenden D. Chase, Feb 21, 2006
  6. Radeon

    Chris F Guest

    halo2 will only work with vista!!! that must mean it is the best thing
    for games EVER!!!!!!!!!
    Chris F, Feb 21, 2006
  7. Oh, i forgot about that. LOL. Sign me up!!!

    Brenden D. Chase, Feb 21, 2006
  8. Radeon

    John Lewis Guest

    Under which cabbage leaf have you been hiding ?
    Care to look at the various on-line listing of PC games.
    Certainly many of the Japanese/Chinese-factory
    mindless gamepad-jerking teeny-bopper console
    games are missing. No loss.

    John Lewis
    John Lewis, Feb 22, 2006
  9. Radeon

    Chris F Guest

    ooh-be-do, i wanna be like you-ou-ou, i wanna walk like you, talk like
    you, cos you're co-oo-ool.
    Chris F, Feb 22, 2006
  10. Radeon

    Slitheen Guest

    Yes, ooh, cos it's all about the eye candy, huh??

    Show me one game as good as MGS3 or S.O.T.C...or even the now 4 year old Ico
    that was recently re-released for cryin out loud, to play on *my* currently
    state of the art PC (I wish I hadn't bothered.....and saved a few bob to my
    console shopping list), and I'll play them.
    Slitheen, Feb 24, 2006
  11. Radeon

    Slitheen Guest

    Well of course. Which is why, next time I even *think* of buying a gaming
    spec PC.....I want you to come round our house and hit me in the chops with
    a large trout.

    I bought a very bespoke, custom built *very* high-spec 'SLI' gaming rig
    about 4 months ago.....and I am so regreting it. POP3.....a poor console
    port, and COD is about the only fun it has given me since. My PS2 and
    Gamecube are getting hammered into submission though. PC gaming is dying on
    its arse, and I would think that a bad thing.....but for the pleasure of
    laughing at a small few ignorent pricks when it happens......like one or two
    contributing to this thread.
    Slitheen, Feb 24, 2006
  12. Radeon

    Chris F Guest

    MGS3 is crap though...

    oh and there is one game that the consoles will never be better than a
    PC for - Football Manager :)
    Chris F, Feb 24, 2006
  13. Radeon

    Slitheen Guest

    NO NO, credit where it's due.....making a then nearly two year old console
    port run only on an operating system that 0.1% of folk will own on release
    is a masterstroke....you have to give credit where it's due? Surely?

    Sniggers. :)

    Pointy Clicky folk - they never fail to amuse me.

    They haven't a fucking CLUE what they're missing.......oh well, back to the
    mundane SOTC for me - I so wish I was playing a MMORPG instead.....poor me,
    everyone weep. [violin plays]. LOL.

    Laugh? I nearly shit! :eek:
    Slitheen, Feb 24, 2006
  14. Radeon

    Slitheen Guest

    Wash your mouth out with soap, this instant! :mad:

    I don't know where to start.....so I won't. :)

    But.....it's just that.....it's like.....ahh, **** it. We'll have to beg to

    I will say this though: Not being Chris F's cup of tea does not equal
    "crap". I can't stand opera, but Pavarotti is a big fat fucking
    genius......if you see? I don't like the paintings of Rembrandt......but he
    *was* an amazing artist.....now see? :-/

    Slitheen, Feb 24, 2006
  15. Radeon

    Chris F Guest

    but it is crap.

    it didn't grab me in the same way that 2 did, and that was pretty bad
    enough when you go back to play it again.

    Twin Snakes was great thought, but then that's mainly down to it being
    a conversion of a good game to start with.

    3 just didnt compel me to play it in the same way the earlier ones
    Chris F, Feb 24, 2006
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