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article imageSony set to make loss on initial PS3 sales

By archangelG     Mar 18, 2007 in Entertainment
Sony, despite problems with production, are set to lower price to encourage sales. But could this all fall to "bits" if microsoft plan to lower xbox 360 prices?
Sony set to lower price of PlayStation 3, despite the price being lower than that of production. This is thought to encourage sales, and to keep the faith of those who have been awaiting the release of the long fabled console, acclaimed to be the "entertainment supercomputer."
Set to sell at approximately $399, this seems a steal compared to the price of production (a whopping $494!), and in the British market release, approximately £425 - that's almost double the selling price in the US!
It stands to reason that the losses made from production will be made up on exports / imports.
But what do you get for your money?
60GB hard disk
WiFi / Wireless controllers
3.2GHz CPU (with many high end features)
256MB XDR Main RAM @3.2GHz
256MB GDDR3 VRAM @700MHz
Blue-Ray compatibility
+many many other features.
Thinking about it, you would be hard pressed to get a PC of this level of specification for that price, especially for the purposes of entertainment.
However, this could cause more disruption in the marketplace, especially if Microsoft strategically lower the price of the Xbox 360, in order to compete for more 360 sales.
I personally can't afford either, so i'm sticking with my PC. Its been my friend and companion for many years.
But will this pricing strategy help lure in prospective purchases? Its a highly sought after product. I think that this will indeed encourage sales.
More about Sony, Ps3, Loss, Price
 
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