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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 259.65+1.4%9:30 AM EST
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To: Sarmad Y. Hermiz who wrote (228524)3/20/2007 2:15:41 PM
From: combjellyRead Replies (1) of 275872
 
"Supposedly, Sony lost money on their game machine."

That statement, as it stands, is meaningless. Consoles use the Gillette model. In other words, sell the razor(console) at a loss and make it up on the blades(games). Now, at this juncture Sony is selling at a substantial loss and Microsoft and Nitendo are selling at a profit. At some point, Microsoft will decide to go for market share and they will cut prices to compete with Wii instead of the increasingly irrelevant PS3.

If you have looked at a teardown on the PS3, there are many areas where their cost is much higher than the other two. From the Blu-Ray player on down, it is a much more expensive machine. The Cell processor is not the major cost driver. As you can see from here isuppli.com the Cell processor at an estimated cost of $89 is not the problem.
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