Report Suggests $500 PS3 Launch Price

An annual report by industry analysts Wedbrush Morgan Securities has suggested that the PlayStation 3 could have a launch price of up to $500. The 144-page report is entitled ‘The Definition of Insanity: Why The Next Console Cycle Will Start Off With A Whimper’ but suggests a largely positive future for the industry. The report claims that the addition of extra functionality to the new console – possibly including a digital video recorder and blu-ray technology – will result in a system that costs $250 to produce, from which the report estimates its $500 price tag. However, the report's warnings about alienating consumers seems unnecessary as Sony have never sought to make a profit on hardware at launch, making the estimate of $500 seem somewhat unlikely. When one considers that Sony has made several hints that it will release more than one variation of the PlayStation 3, at different price points, it would seem more sensible to imagine a basic version being sold at the usual $250-$300 price point and other, more feature rich, versions appearing at $500+. Source: gamesindustry.biz