Predictions Point to PS3 Creating Losses

For the unaware, analysts have predicted the PS3 price tag to be around $399US. If this pulls through, will Sony lose $100 with each console sold?

Citing a prediction made by Merrill Lynch Japan Securities, the PS3 will cost about $494 per unit, while the system will be sold for $399. Merrill Lynch Japan says that the main the Cell chip, RSX and BD-ROM drive — the main components of the machine — will cost approximately $100. The rest of the machines components will take up the remainder of the cost.

Of course, more times than not, console makers lose money on their consoles to keep them cheap. Then they jack the prices of peripherals! Check out the article over at Gamespy.