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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (218358)	11/30/2006 11:11:21 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

cj, Microsoft is getting ready to cut prices. Currently, Microsoft makes abouts $75 per console. Which is unusual in the console market. Sony is losing about $300 per console for the high end one and about $350 a unit for the cheapy. All these are estimates based on tear downs. If Microsoft cuts prices by about $100, then even Wii will be feeling some pressure. Now Wii can survive. PS3 is a bigger question mark. Wow, that's huge! I wasn't aware of that, since I am not following the console market. I don't see Sony ever recovering the money lost from the royalty / licensing revenues. Sony will have to go with probably 1 to 2 years of huge losses before the costs come down. BTW, if XBox gains leadership position in console market, it is good for AMD, since XBox uses ATI graphics. Joe

To: combjelly who wrote (218358)	12/1/2006 1:10:57 AM
From: Tenchusatsu	Read Replies (2) \| Respond to of 275872

CJ, > Even if the field is more level, it all comes down to content. PS3 is apparently a nightmare to program. So, despite the incentives, games are slow coming out for PS3. And that will hurt more than pricing and low availability. They said the exact same thing about PS2 when it came out. It's hard to program. It's in short supply. Sony is losing too much money on it. Yet PS2 turned out to be the undisputed leader in the game console market. With Cell, PS3 will get there as well. The hard-to-program argument never held any water, since that didn't stop PS2 from getting some of the best games I've ever played in front of my TV. Cost and availability will improve; after all, the PS3 platform is expected to last for years. But the key really is Cell. Eight cores. You can do just about anything with that. I'm sure two of my favorite game developers, Konami and Square, are already going to create virtual miracles, starting with one game that for me will turn PS3 from a "nice to have eventually" into an "OMG, I gotta have that mommy/daddy/honey!" Tenchusatsu