Subsidized hardware has long been the norm in the video game business, where console manufacturers count on software licensing fees to make their dough, and Sony’s
new PlayStation 3 appears to be no different.
Research company iSuppli totaled up the parts and estimates Sony loses
$306.85 on each PS3 equipped with a 20GB hard drive (retail price $500) and a mere $241.35 on each 60GB model (retail price $600). That means Sony will have to sell six games for every PS3 unit to break even, a high bar even for the market leader, or make it up on accessories.
The most expensive parts of the console, according to iSuppli, are the $129
Nvidia graphics process and the $125 Blu-ray disc drive.




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