Originally Posted by victim
How much did the PS3 go for originally? I remember a few of my Xbox friends claiming it wasn't worth the price tag, I'd be curious to see what they have to say about this. We were 17 then and a lot more prone to stupid console debates than we are now though.
$599 for the better version, but it was almost entirely due to low Cell yields and blu-ray diodes. The Blu-Ray player in the system alone cost over $200. Even at that high price Sony was taking a $200+ hit per system. It's why Ken Kutaragi stepped down and was replaced try the more sensible Mark Cerney. PS3 is doing well now, but it was a financial disaster for a very long time because of the crazy custom hardware. Cell cost something like $400 million to develop. :/
PS4 won't have that issue since it's mainly using off the shelf parts and tech that has been well-established for quite a while. Unlike with PS3, they don't have to build entire factories just for the CPU. It will most likely be $399 and I doubt Sony will take a very big loss even at that price. It's the EXACT same hardware strategy as PS Vita. Everyone thought that would cost over $300 just because it's powerful, and then Sony shut those people up with a $249 price tag.
What's funny about the Xbox possibly costing $500 is it used less powerful hardware than the PS4 (not including Kinect 2). Slower GPU and much slower/cheaper RAM. I'm guessing MS just wants to be profitable right away and is confident in the subsidization model. It works well enough for the 360 anyway.