How the PS3 Hit $600

Joystiq has up an interesting article today, gathering together information from a couple of places to discuss why the PlayStation 3 is so expensive. From the article: "Kutaragi was demoted after being passed over for the role of CEO and, when former Sony Pictures head Howard Stringer assumed the position, the relationship between the content and technology divisions of Sony became even more intimate. Stringer "quickly dubbed the PlayStation 3 as one of the company's 'champion' products." Kutaragi's desire to stratify the console market with Cell technology in effect wed Sony to the unpalatable prospect of charging an unprecedented price. Coupled with Sony's desire to not only push their own content on HD discs, but to control that medium with their proprietary Blu-ray format, the final price was escalated by two very advanced (and very expensive) pieces of Sony technology."

Comments

How the PS3 REALLY Hit $600

[Joebert]

Information collected from RooKit Marketing suggested gamers were willing to pay that much.

Let's face it, they've figured out that without a girlfriend, we've got money to burn.

Re:Low yields on vital PS3 components

[Epistax]

Either you are an idiot or you have big balls. Or you're an idiot with big balls. At any rate I wish to subscribe to your idiotic large testicled newsletter.

My previous employer boasted the best yields in IC manufacturing, but I never heard what any competition got. I don't know if anyone could tell me if yields this low are somewhat normal, but I'd like an idea.

Assume the position!

[metamatic]

Kutaragi was demoted after being passed over for the role of CEO and, when former Sony Pictures head Howard Stringer assumed the position, the relationship between the content and technology divisions of Sony became even more intimate.

I think they could have phrased that more tastefully.