HappySqurriel said: I'm sorry, your estimate is not very good... Lets use nice round numbers for the RSX and Cell: The RSX initially cost Sony $100 ($75 physical manufacturing cost, $25 Licencing/profit) The Cell has a lower licencing fee because Sony is involved on its R&D and will likely pay for most of its future development. Now, assume Sony moves to the 65nm process for these processors: The RSX now costs $62.5 ($37.5 Phyiscal cost, $25 Licencing/profit) The $10 R&D cost on the Cell represents the $100 Million Sony would have to spend on the Cell to prepare it for the 65nm process spread out over the initial 10 Million consoles sold at this price ... Basically, with my round numbers you can see that Sony could save about 35% of the cost of two of the components that will drop in price the fastest by now; overall an estimate of 20% to 25% is much more realistic. Being that Analysts initially estimated the PS3 as costing $800 to product a 25% reduction would put it at $600, and a 33% price reduction would have it at $525. |
You do have a very good point and i agree that Sony will be paying a royalty on Graphic chip.. So it will not be having lot of saving there. But i think i have not reduced the Graphic price too much. So i don't think it should effect my estimate much... $80 is still a lot of money when you r thinking of orders of millions. and OEMS have to pay like 10 - 20% of wot a customer pays on newegg or bestbuy for that particular item. So the prices r unexpectedly low for them . But i think 80 is not a bad guess.
But for the Cell i don't think i agree with you regarding the royalty. I don't think one has to give a royalty in co-developed product if all entities are equally participating. But if you have a source then i will glady like to be corrected. But my gut feeling says that Sony is not paying royalty on cell chip. Btw IBM is also using it on its server and i think they r getting good demand for it. So if Sony is paying then does IBM also has to pay royalty?
