Sony's PS3 cost-cutting starts with the European launch
by Ed Stasick 
{ Mar 8th 2007 at 8:00PM }
The cost of the PS3 is going down. At least that's the word out of Tokyo, where the Nikkei Business Daily spilled some new beans on the "down-graded PS3" and, specifically, the new, cheaper chip inside the European PS3.
"Sony Corp. plans to lower the production cost of its PlayStation 3 game consoles by using less expensive chips. Starting with the European version of the PS3 that is set to debut on March 23, the paper said Sony plans to use a chip that can handle only the graphics of predecessor PlayStation 2 instead of the current chips that can handle both the computing and graphics functions for the PS2."
It might seem like a minor change, but every penny counts in Sony's come-back plans... so don't expect any of that cost-savings to be passed on to you, me or Joe Gamer. These pennies are going straight into Sony's own pockets. Greedy bastards.
[Via thestar.com]
Reader Comments (Page 1 of 1)
bootsielon @ Mar 8th 2007 8:22PM
Well, if these means Sony will start with a better backwards compatibility program (finishing with all or most titles, and upscaling), then I'm glad. Besides, if this means getting a price drop sooner than later, then this is great for anyone wanting or owning a PS3 (I say owning because it would mean larger installed base, which means more people to play with, and more games for the platform).
It seems that the heavy investment on the PS3 is paying off for Sony, Blu-ray and PS3 users. Go to "www.thedvdwars.com" and see how these last few days (this week), demand for Blu-ray has skyrocketed, especially when compared to HD-DVD.
Erren @ Mar 8th 2007 8:39PM
My question is, what happened to the supposed March 08th system and PS store update?
humpty @ Mar 8th 2007 8:45PM
The thing with PS3 is that there is a lot of room for cost reductions; the BD drive, HDD, various chips, the Cell processor. The cost reductions in the BD alone will be quite significant.
Compare this to the Wii. How much is their to reduce its costs. The CPU and GPU are already highly optimised GC variants.. theres not much room to cost reduce. What about the DVD drive.. its already bottomed out. The audio chips.. you can get worse than Dolby ProLogic.
Killer @ Mar 8th 2007 9:07PM
Bootsielon, bootsielon, bootsielon, don't waste 10 years of your life (maybe more) looking at that site every day. This isn't a war, that can be won, unless someone buys out Universal. Face it, they are going to have to live in harmony, I mean Warner Sees that. Dual disc. hell yes.
Abras @ Mar 8th 2007 9:36PM
HAHAHA #3. The Wii is ALREADY cheap!! And Nintendo is STILL making money off of each one sold. It's hard to believe that the other 2 actually lose money for quite some time. It'll definitely be a while b4 sony starts showing some profits on the PS3 (if ever)
bootsielon @ Mar 8th 2007 9:48PM
Killer:
Well, you never know... but if Universal sees sales for blu-ray spurr, and therefore going dual format (or blu-ray exclusive at worst for HD-DVD), then HD-DVD is dead in the water. That would be like Metal Gear Solid and Final Fantasy XIII (and versus) coming out on 360, in the case of PS3 (sort of).
Jose @ Mar 8th 2007 9:55PM
I'm with you Erren.Ialso would like to know what's up with the alledged 3/8/07 update.
Broadside @ Mar 8th 2007 10:05PM
@ killer
have to disagree I think HD-DVD is punch drunk and the knock out blow will soon be delivered, momentum is everything and right now Blu Ray is all over its competitor, majority of studios, more content, more manufacturers behind it....people said Sony was backing another Betamax, the analogy is correct but it is HD-DVD which is the niche equivalent of Betamax, not Blu Ray.
Back on topic, the Home Concept will broaden the PS3 audience, maybe not for hard core gamers but they don't have to pay for it and they don't have to use it. After a very slow start PS3 is building up a head of steam and I can see decent price cuts pre Christmas this year which will really make things interesting.
GRT @ Mar 8th 2007 10:06PM
Where'd you hear about the March 8th update in any kind of official capacity? I called BS on that rumor when someone posted it, I think it originated on the IGN forums.
That's the problem with all these 'blogs'. Someone pulls something out of their rearend and posts it and everyone just believes...
Anyway, how is this story different from the first time it was reported like a week or two ago?
REalist @ Mar 9th 2007 3:49AM
This is directed to the 'blogger'. Sony, and its competitors, are in business to make money. They are losing money on every Playstation 3 sold right now. How does that make them "greedy bastards"? If you add up all the crap that someone would need to buy to make one of the competing consoles more similar in features to what you get out of the box with the PS3 - you would be paying just as much if not more - and you'd have a clunky bunch of junk instead of something nicely integrated. You're full of crap.
BleedingEdge @ Mar 9th 2007 4:25AM
Ed Stasnick, you're a complete moron. I mean, seriously buddy, what are you thinking?
Welshbloke @ Mar 9th 2007 4:42AM
As is the norm my first rant dissapeared into the ether.
Cost reductions are wonderfull things except when they are cost reductions and you are not receiving them i.e. the European market. Add on a perceived deficiency i.e. the Emotion chip and you have a hard sell.
The 1000 as yet unnamed compatible PS2 games is only the beginning I think the PS2 has over 8000 titles. So this in my mind makes the issue for the PS community far larger than say the Xbox community.
Looking long term this is great due to the potential capabilities that software emulation can offer you and the future price cuts that this will bring.
Short term though it is not helping the units shift. Couple this with a recent article posted on a UK newspaper website that the UK retail market was still unaware of the Emotion chip impact and is still telling customers of the compatability prior to the Emotion chip removal and we have an interesting time ahead for the consumer and retailer alike.
I have it from a source that it is unlikely that the PS3 will hit the streets in the numbers expected (A production problem again but not the Blue Diode). Whether this will eat into allocations and cause the same kinda of mess as the 360 I do not know.
The whole allocation and the lack of completed allocations is fishy in my mind but that is a different discussion.
The HD DVD v Blu Ray war has not even started yet. When my mother in law is getting HD Discs (I wanted to say HD DVD clever name that) then I will know who has won. I will say that HD DVD is a damn good name in the marketplace as it does what it says on the tin unlike Blu Ray which says what is does inside the tin which kinda is not as good really from a Mother in law perspective.
Dual format will continue for some time to come. I cannot see that changing and HD DVD I am sure still has some salvo's that it has yet to fire as vice versa for the Blu Ray. My concern is that both formats will run out of steam and we all move over to digital content over the wires.
Broadside @ Mar 10th 2007 12:11AM
@ Welshbloke
I agree the Mother-in-law decision is critical, people who care about this issue are very very early adopters, however I would say that content is king in choosing a format and in that respect, Blu Ray will win hands down. For the same reason, PS3 is currently struggling in the console race for lack of great content, which is now starting to be rectified. I would be mighty surprised if the race is still even in question by the end of this calendar year.
I don't agree that the winner of the race is a moot point because we will all go and get our content over the wires, a lot of countries do not have the same infrastructure and high speed access that Americans take for granted, and it will be many years for most before large files (comparable in size to a high definition movie) can be transferred over the net with true speed and convenience. So the next format does matter in my view.
Broadside @ Mar 10th 2007 12:15AM
to clarify "I would be mighty surprised if the race is still even in question by the end of this calendar year." I meant the Blu Ray vs HD-DVD race, not the games console race.
I think that will be too close to call, which is great for consumers no matter their choice.