Frost said:
IBM and Toshiba are still on track to move the Cell and RSX to 45nm mid-year, thus significantly improving yields, and IBM has also solved issues with the SPEs, thus improving yields of the Cell further still. They've also been having some good success marketing the Cell to the embedded market, meaning economies of scale drop faster. Add that to other falling component costs, especially the Blu-ray diodes, and Sony will have slashed a significant amount off of their per-unit production cost. Meaning, they can cut the price by $100 at that point and still make money on every console sold in the US. Which, I believe, they will be more than happy to do... Microsoft's next drop will likely be another $50 drop, and once it's dropped $50, it won't move again for a bit. It's entirely likely Sony will use their significant cost reductions this year as an opportunity to attain price parity with the 360 in the US since they could do so without incurring financial losses as long as IBM and Toshiba stay on schedule with their respective development roadmaps. |
Where are people getting this idea that Sony has made a tonne of cost reductions and that Microsoft has been stagnant?
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