On the PlayStation3's Cost

Sony let the cat out of the bag today, revealing projected production and retail costs of their next video game console, the PlayStation3: nearly five hundred dollars to make, sold at four hundred dollars for a loss.

This I like:

This puts Microsoft in a very good position. It has a console of comparable ability to PS3 launching first and with a cheaper price tag, with further potential to drop the console’s price to coincide with PS3’s (and Halo 3’s, let’s not forget) launch.

This I find incredibly bizarre:

This is potentially a very damaging situation for Sony who, according to yet more startling words of wonder from figurehead Ken Kutaragi, expects customers to “work more hours” to afford this luxurious piece of equipment.

I’m salary. I can work all the hours I want and it makes no difference in the paycheck at the end of the week.

Still, the PlayStation3 is a year and a half away in the North American market. Production costs may decrease over the next year. Sony might not have to price the system at four hundred dollars.

The next round will be interesting, to say the least.