Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives

Is PlayStation 3 in Trouble?

? The Plot Thickens at Brocade |


| Should XM and Sirius Lower Their Prices? ?

February 17, 2006

Is PlayStation 3 in Trouble?

Cliff Edwards

Merrill Lynch in a report today says Sony's launch date for Playstation 3 continues to slip. Its analysts suggest PS3 may not launch until the fall in Japan, and only arrive in the U.S. and Europe in late 2006 or early 2007 (likely in such limited supply that it may not effectively be available for another year).

The problem? While consumers will love the bells and whistles like Blu-ray Disc and the Cell processor Sony is building into the player, Merrill estimates that sends the bill of materials up to a budget-busting $900. With most people expecting the PS3 to sell for under $500, that's a lot of red ink to swallow. For Sony execs now, the problem is what to do, what to do?

No doubt the folks over at Microsoft are cackling merrily away at the potential dilemma.

01:02 PM


TrackBack URL for this entry:


I really hope Sony doesn't expect middle America to spend 900 dollars on this new console...even 500 is too much. Sony has avid fans everywhere because their product has been affordable...and now? Ouch!

Posted by: Brenda at February 18, 2006 04:45 AM

oh man. I couldn't even wait till march this year. but you know, if ps3 is that expensive it means its gotta be good. i mean ps3 cost the double the xbox360 does, so its twice as good. sony rules, too bad about the lauch though. Damn! but sony rules. no matter what happens to them

Posted by: solid snake at February 21, 2006 05:40 AM

PS3 better be kick ass when it releases. This can only be goof for the Xbox 360 though since more people who have been waiting will just buy a 360 now and get a PS3 next year.

Xbox 360 is looking better and better everyday. My hope is that MS offers a 360 with HD-DVD sometime this spring. Until then, I won't purchase a 360.

Posted by: Wes at February 21, 2006 11:24 AM

Well since the whole world plays halo 2 now pretty much, your gonna see halo 3 shift an AWFULL lot of 360s and you all know it !

Posted by: ray at February 22, 2006 08:28 AM

I really think X box 360 is better but this PS3 is just way to expencive I'll have to work for moths to buy it....

Posted by: D-masta at February 23, 2006 01:05 PM

Same thing happened to the 3D0 thats happening to PS3.

Posted by: Drew at February 27, 2006 11:22 AM

The fact that the unit may cost double what the 360 sells for is no indication that the system will be twice as powerful; just an fyi, you Sony loving NOOB!!!

Posted by: John at March 22, 2006 12:40 AM

With third party developers making a lot of the same games (such as Resident Evil 5 or Splinter Cell) on both the Xbox 360 and PS3, getting the much cheaper Xbox 360 is a no brainer. The games are going to look the same on both systems, so why should I spend $900 for a PS3 when I can get the almost exact thing for $400? Also, Microsoft mention that they will lower the price of the 360 every year. And with the Nintendo Revolution coming out for as much as $250 around the same time PS3 launches, I believe Sony is going to have a very hard time to sell a $900 system.

Posted by: Michael at March 29, 2006 02:20 PM

Guys just settle for xbox 360..i mean overall its better system than playstaion 3 will ever be...just play oblivion on the 360 and you will know what i mean..there arent good games that comes out for playstaion consules anymore guys...and playing 600 for a system is stupid..just look at this fourum from ign..the results are shows how much better the 360 is compared to playstaion 3

Posted by: 360lover at May 11, 2006 12:23 AM

ok guys first of all the ps3 is set for a 20 gb hard drive for $500 and the 60 gb hard drive for $600 they have much much but much more better graphics than the 360 and is backward compatible with ps1 and ps2 and all old games will be enhanced to new images. free internet play bluetooth blue ray disc witch it holds 5 times more than a HD-DVD can ever hold u can also use psp as a remote so if u guys have a psp u dnt have to buy another remote..u guys r too stubborned to realise PS3 is much better than x-box even with the first x-box havin better graphics than PS2 they still kicked ass as you guys well know...360 is garbage..most of the 360 games they buy it frm sony themselves...mostly sega capcom and acclaim make most of the good games for x-box which they are all own by sony AND PLUS the blue ray disc player at stores by it self will cost 1,250.99 so paying 600 for PS3 and having it already is very much worth every penny and may i also add is stronger than da strongest computer eva madeso guys u cant compare x-box to PS3..x-box sucks big time..only game worth to buy the system for is halo and they pretty much will do the same thing to ps3 that they did to ps3..crack its hardware to play x-box games in ps3 and all other so x-box has no chance..PEACE

Posted by: vic at May 14, 2006 11:56 AM

CPU Cell Processor 3.2GHz

AV Output HDMI, A/V, Digital (Optical)

GPU RSX "Reality Synthesizer" Disc Media DVD, Blu-ray, Backward compatible PS2

Supported Resolution 480i, 480p, 720p, 1080i, 1080p

Communication Ethernet, WiFi 802.11b/g, Bluetooth

System Memory 256MB XDR Internal Storage Detachable 2.5" HDD slot

Controller Bluetooth Wireless (up to 7 additional), Motion sensitive I/O MemoryStick, SD Memory, CompactFlash, USB 2.0 (4 ports)

these specs clearly show it is much better than 360..PEACE OUT

Posted by: PS3 WILL ANIALATE at May 14, 2006 12:04 PM

Err...without benchmarks, none of what you've mentioned ("Reality Synthesizer"???) helps to compare one system to another.

Posted by: Matt Vandergrift at May 28, 2006 03:53 PM

Stop proclaiming which console is better, people!!! Xbox360, PS3 and the Wii are all good in their own right. Just enjoy all three consoles. I?? sure that will make you feel happier and/or complete--but most importantly--it will make you quit your ranting and raving. So I suggest you all begin saving up your money, and, please, quit your bash talking. Don?? talk nonsense just to hear yourself talk.

Simply go ahead and get yourselves a job and a credit card and then decide which console you will purchase first, second and then last. I know I already have the 360 and will be buying the PS3 when it's released. I also have plans in buying Nintendo's next-gen as well. It's like having the best of both worlds--only in this case is the best of all 3 worlds! So people, just shut once and for all, and enjoy the next-gen consoles for what they are: pure entertainment! All three consoles are cool in their own way. All are meant to have qualities, but sadly they will have something here or there that you will probably dislike.

As for myself, I know will continue to support these big companies and will continue to do so until they suffer the same fate that the Atari and Sega faced. Both of these old brands also held a special place in my heart and room back in the day. It brings back good memories.

Nevertheless, I still have time for work, video games, and not to mention, plenty of time to dedicate to my precious girlfriend (bless her heart). All of this while you clowns are still debating foolishly about which console is better.

Consider that all consoles have pros and cons in the short-term and long-term. Remember, they??e just here to keep you entertained and to bring you joy by playing the video games you so love.

Posted by: Anonymous at May 31, 2006 08:07 AM

Bottom line Sony is all Hype and the real fact is thier hardware is nowhere close to how powerful they claim it is.

The real truth is they are pushing that lame Bluray into homes as fast as they can to try and win the format war.

Take notice no other console company is bothering with HD or BRD.

And M$ even backs HD-DVD!

The crapsole is not worth $6 bills when the 360 can do the same graphics as thee PS3 don't wanna hear but it has BD and can do sdcard transfers who cares I want a console not another PC!!!

Posted by: The ACE at June 14, 2006 12:48 PM



Cheap to make

Fast to market

Streaming and copy to hard drive facilities built into the formats copy


30gb capacity at the start, with 'more' to follow.

Flip-disks to retain compatability with older DVD players

DVD consortium backing witht the DVD brand.

Significant backing from hollywood.

Support built into Windows Vista from day one.

Extensive Interactive features thanks to iHD.


Smaller overall capacity compared to Blu-Ray.

No PS3 like subsidy for a player to lessen the cost.

Fewer Big name brands than BLu-Ray backing it.



PS3 has it built in from the start.

Recordable first.

50gb capacity promised, although when is still uncertain.

Huge backing from manufacturers (although HP is threatening to pull



More Expensive

Bulky cartridge based system for loading disks.

Not ready for market yet.

No content ready yet.

Uses Java for interactive content.

No streaming facility built in, or copy to hard drive function for media


Lack of brand awareness, has to build itself up as the Next Gen DVD.

Fewer hollywood studios support it.

No support from Chinese cheap manufacturers yet.

So frankly it looks like HD-DVD will be the winner.

Imagine the trouble Sony will have when 100s of DVDs are released with

HD-DVD content on the other side. People will be buying these before

owning the apropriate hardware, then when they get a HD DVD player then

can use their existing collection and get the FULL benefit of Hi-Def


But the ps3 is going to be nice,is coming out with HD-DVD,so this is going to be an outstanding battle ps3 and blu-ray vs 360 and HD-DVD,who will win

Posted by: Dwayne Morris at August 7, 2006 05:00 PM

PS3 is gonna be more expensive cause of its blu-ray, if it wasn't for blu-ray it would be like the 360 or less, blu-ray players cost $1000 to $1500, no less than $1000. but blu-ray doesn't matter, graphics matters and this is what microsoft owns.

Posted by: dingopack at August 18, 2006 11:36 PM

I really believe Sony is on its way out. I originally was going to buy each of the next generation systems but with the way things are looking for Sony I seriously believe they are going to get an @$$ whipping this time around. All of their launch titles except for 2 will be available for the 360 and Wii and with games costing anywhere from $70 to $120 each it is just a rip off. Sony is in for rough waters ahead and I cannot say I am suprised. Lack of originality and any exciting exclusive games are going to do them in. Also from what I am hearing the Blu ray is being used mostly for anti piracy issues. So basically what you are paying for is a parent making sure you are paying for your movies and games. That is really worth an extra $200 dollars. They seriously better hope that their loyal customers stick around because even the stores that are going to be selling their systems are bashing them. Everytime I ask a employee if they are holding pre-orders for the PS3 they tell me "steer clear of the PS3, it is going to be a huge waste of money. The games worth buying are going to be overpriced and will be available on the other systems." That is also the most damaging press when people here that from a store emplyee it puts doubt in their minds. Most parents going to buy one for their child for christmas while run away after hearing that. Only the loyal customers will ignore it but hopefully they will research themselves since it will then become pretty clear. Do you really think the majority of the multi platform ports are going to spend the time and money to polish all the games to the limit of the PS3's potential? I think Sony got way to cocky and are going to lose huge amounts of money. I am not going to pay $600 dollars for something I am only going to be able to use as an DVD player in 2 years. Even Rockstar decided not to risk having the next GTA become a major flop and they are not the only developers to think this way either. I am am placing my money on Nintendo and Microsoft this time around. It is time for Sony to get knocked off their pedestial.

Posted by: ben at September 3, 2006 02:45 PM

x box 360 will own the ps3

the xbox 360 has more games and its graphics are great

the ps3 is way to expensive for what they are giving us...i can understand why the price is so much but look what microsoft did they added an assaserie to by along with the system ( hd dvd player )

all i no is that i am very very happy with my 360 and all my firends are...

Posted by: sean at September 15, 2006 04:20 PM

XBox 360 has a huge advantage because of their earlier launch than the PS3...when PS3 finally hits the market, it will be difficult to find and over priced. I was holding out for a PS3 and couldn't take it anymore, so I broke down and bought the 360. Worse news for Sony...I am extremely happy with the 360. I'm a one-console kind of guy and won't be dropping $600 on a PS3. This is coming from a PS2 owner who didn't own the original XBox.

Posted by: Dan at September 19, 2006 07:01 PM

I'm from Australia, and gaming isn't as big as it is in America and Europe. I love my 360 and I'm sick of hearing my ill-informed friends continually ranting on about PS3 being better even tough they haven't done their research. Any way, can't wait for Gears of war, R6 Vegas and Halo3, but still can't decide whether to buy Call of Duty 3, Medal of Honour Airborne or Brother's in Arms: Hell's Highway. I don't have much money and can only afford one. PS3 has been delayed til March 07 down under so it looks as though Wii will dominate the xmas sales as many parents of 10 year olds will easily opt for its cheaper price and new motion sensing technology. I still love 360 and I hope MS wins this generation of console wars.

Posted by: Shane Bailey at September 23, 2006 07:06 AM

If you will look it up, there's been news about Sony in the recent past. about their quality, their pricing, and their ideas on business. because Sony has become so big, they admitted to believing they can make the latest and greatest, fancy it all up to look nice and stick their logo on it and charge any price. because they're Sony, people will buy it.... which was true when they brought the CD player into the world of boom boxes on your shoulders. but now we're talking about serious companies fighting in a private club of console makers.

everyone bashes microsoft... cause it's *scary voice* MMIIIIICROSOFT. i'll tell you what, they're putting more effort into making a success than Sony is. i dont know what this crap about wireless, card reading, endless different kinds of connectsions crap is all about. if you're showing those kinds of specs as to why a system is great, then welcome to the poor mans PC.

The truth of it all is, 90% of games come out on all systems. its the few companies that only make games for one system that is special, such as Rare working for microsoft now, along with microsoft games (which are actually good)sony has Squaresoft and nintendo have themselves (which again is a lot of good games) with 360 out way ahead of everyone else, microsoft has effectively gotten out of being the "new guy" it was with the original. now it's a question, what of those exclusive games is worth getting which system for. forget the specs, each system is going to be good... personally i'm not using the Wii unless i can have a normal controller and not have to do funky crap just to enjoy a game.

Posted by: Jeremy at November 3, 2006 04:26 AM

OK GUYS. For all you idiots out there Ps3 is gonna kick X-box's @$$. The graphics for the ps3 are much better and also it has a built in blue-ray player which alone costs around $800. Paying $500 to $600 is nothing for what the ps3 offers. All you ps3 haters just bought the 360 and were too impatient to wait for the ps3, which is why you don't want to admit that you bought a shoddy product, compared to the ps3. Wait and see the revolution that is PS3!!!!

Posted by: nj at November 4, 2006 07:09 PM

jeremy = sony noob fan. the 360 has more exclusives than ps3, the 360 has mass effect, too human, halo 3, gears of war, fable 2, bioshock, blue dragon, lost oddessy, and like 30 more in develement. ps3 graphics are better than 360's?!?!!? Lets all look at call of duty 3, we all seen ps3 and 360 screen shots of them, do they look any diffrent?!?! no they look exactly alike. Gears of war is bad graphics?!?!? you might be on a 480i mono bass-less 10" tv my friend. Plus 360 is cheaper and you can get a nintendo wii and a xbox360 for the price of 1 ps3. Ps3 is just a coppy cant think of anything for itself thing. The controller coppyed the motion sensing of the wii. Copyed the xbox360 button in the middle where it takes you to the dash bored. Its huge, wayy bigger than the 360. And copyed the exact menu system of the psp (even though i love psp and have 1)Issue 160 of game informer magazine took a pole of all developers and asked them which system are they most excited for. 37% said xbox360 16% said ps3!!!!!! 32% said nintendo wii 5% said pc 5% said nintendo ds and the last 5 said psp. For some reason i am feeling like the saturn already. Wonder why mercenaris and assassins creed arnt ps3 exclusives anymore?!?! because they know the ps3 is going to be crap and they wont make any money off of it. 360 is the future people, sooner or later you will see a big swing in momentum for exclusives to the 360. easy to make for, cheap, good graphics, not all hype. Can come with a wii and a 360 for 1 ps3. So jeremy and everyone else who are sony fan boys, dont come in saying ps3 is good because it has better graphics and blue ray, look back and see the facts! 360 is changing the world!!

Posted by: bleach man at November 6, 2006 06:14 PM

If XBox 360 is so great, what are you all doing wasting time to defend your console instead of playing it?

Posted by: wasteoftime at November 7, 2006 07:00 PM




honestly we dont know what the ps3 is capable of screen shots dont do it justice and xbox has the advantage because its already out

that doesnt make it the superior product

honestly i dont see how a system can have the disc cappacity that ps3 will have and not have better graphics than what xbox does

to my knowledge the hd-dvd connect is only for movies


yeah ps3 has hiccups but what system doesnt

come on all this sony noob talk

i think yall are acting the same way about xbox

you already have one and feel you need to bash sony because of it

alot of people actually want ps3 but know they cant afford it

if it cost 299 more than half of you wouldnt have the ill feelings

be real

with time comes advancement so there has to be something to this ps3 thing

as soon as all the bugs are out i will get the ps3

and yeah this isnt a civil war so i will also get the xbox afterwards if only for the gears of war

i mean come on stop lying to yourself

i really the avid xbox owners are really annoying with your arguements

and most of you cant spell lol

Posted by: LOL at November 10, 2006 12:00 PM

first off numbers don't matter even if they are bigger! and second off what good is sony great system if it is too expensive and doesn't even work right. I will stick to xbox 360 seeing how if mine breaks i can replace it with a new one and still not pay as much as a ps3

Posted by: Damon at November 20, 2006 12:03 PM

Ok guys and girls,

PS3 is a high prices like game of the past, Neo Geo, 3DO, and a few others that were out of normal cost ethics. We all know Sony is dominated by Greed. We know Microsoft is too. So expect the next Microsoft to have a Pentium or AMD in it. Blu Ray is really not a gaming enchancement. It falls under gaming Security and if you are an honest gamer why pay for it? The truth is Systems are systems. There end is near. They are mini affordable computers. E-Machines can be purchased for $366.99 with DvD Rom, Internet, Gaming proccessor, Video Card, and other perks like Windows(Microsoft gets you both ways). So who cares who has the Bigger Hard Drive? Stop measuring it when computers make them seem like Baby toys.

I agree with 1 idea, $600 dollars is the price of 1 system when $550.00 is a price of 2 with a game per each system.

As far as game exclusivity, last year all the contracts signed with PS series expired and now they are all but 5% releasing multiplatformed.

PS: I have a Wii. The reason: I can exercise and play a game at same time. I rather go Boxing without getting hurt and work out to help me get tone for the ladies. I am a gamer for fun and enjoyment not to be a gamer god.

Posted by: Roger at November 20, 2006 10:56 PM

The PS3 will own because of the blu'ray disc.

Sure, its gonna be more expensive, but that means

that it is something to wait for. I'm sure gonna

buy that PS3, and i hope you are gonna too.

Posted by: Bob at November 22, 2006 04:15 PM

People tend to forget that Sony had success with the Playstation 2 because of the demand for DVD players in Japan. The problem with the Playstation 3 is that Sony is assuming quite early that there will be a demand for Blu-Ray technology when there are no hard numbers to prove that the public wants it. We also have to remember that Sony often backed failed media formats like Betamax and more recently UMD.

What made the Playstation 2 so successful was that Sony was able to manufacture consoles for less money than Microsoft could which translated into price drops for the consumer and capital to hold games exclusive to the system. As of right now, Sony is losing between $200-$300 dollars per PS3 unit manufactured and is losing the war with Microsoft.

Apparently, Konami complained about PS3's price tag due to the fact that Konami was afraid that the Japanese public would be put off my the price and not buy a unit to play Metal Gear Solid 4. Sony caved and dropped the price of PS3 in Japan by 5,900Y ($50 US)

Sony also halved the number of consoles at launch...200,000 on launch day in the US instead of the proposed 400,000. Rumor has it that PS3s will be scarce into spring 2007.

Software is another problem for Sony. While the number of titles at launch were comparable to the 360's, Resistance: Fall of Man looks like the only one worth a purchase. There is no excuse for an ugly game like Gundam. If anyone remembers, Sony shipped dev kits to developers 4 months before Microsoft did. There is no excuse why any PS3 game should not look gorgeous. But the most powerful console never won a console war.

Personally, I hope that the PS3 does succeed. I believe that if Sony fails then it would create a vacuum that could send the industry into near oblivion like the early 80s. Sony needs to remember what made the Playstation brand a success. It wasn't Sixaxis controllers, an online serice, or support of new media formats. It was that Playstation had a large library of games...especially exclusive titles. That is how Sony will win.

Posted by: AJDR at December 1, 2006 02:43 AM

The 360 is a very good console. Although the playstation 2 had more games, it doesn't mean they were better than the xbox(which I also own).The real issue is how good the games are.As for spelling, some of you should take a course in the Queen's English!

Posted by: ajp100 at December 3, 2006 05:47 PM

Playstation 2 had me in for it even after 3 years of xbox being it's rival. The original Xbox was great (i wish i had one). But the 360 bombed with it's shyte ATi and a horrible untrue rumour of it having USA or Unified Shader Architecture.

PS3 again has me in it even after almost a years release of the 360. Graphics are almost never going to get better. This is literally where they will be at for a while.

Wii has me in it a little to a less more than the 360. IF the 360 chose nVidia and IF it chose AMD I would have stolen a bb gun loaded it with real bullets, shot someone looking for a 360 in an isle even though theres about 20 in stock and shot him/her (mostly him)(make that 100% him (no offense girls)). But they didn't so screw that plan.

Wii is using the abominable ATi as well. The only thing the Wii is good at is the activity only games. I can't imagine my self playing CoD3 with a remote (I mean Wiimote). The Wii will really sell fishing games this time round.

And for all "trying" to look smart and "try" and impress the girls by acting all smart and nerdy by saying the specs of one console but not the other then stick with the last generation of gaming.

It's like saying "can I play PS3 game on PS2 dheerrrrr????" and for people still wondering if you can play PS2 games on a stock PS1 please save yourself and don't comment. In fact take some elmephanol or memory erasing drug this instant for my sake and for all that is holy... yours!!!!

Posted by: vobfrb at December 6, 2006 01:12 AM

blog comments powered by Disqus