Merrill Lynch says PlayStation 3 will cost $800

Investment firm Merrill Lynch has come up with an estimation of the cost of PS 3 by breaking down the components one by one. All the components added it would cost $800 (and not $900 as it says in the memo).

ps 3 breakdown
ps 3 breakdown

In any case, that's a huge amount of money considering that it is a console designed for individuals and not for a public utility service.

Is it going to lose out to Xbox 360 purely on this basis? Though, Sony will have no option but to sell the consoles at a lower price than the cost of production as MS did with the Xbox 360, still the question remains, how much?

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