by Anton Shilov
05/13/2006 | 07:37 AM
Sony Computer Entertainment Inc.’s president Ken Kuratagi has defended the price-tag of Sony’s PlayStation 3 game console that will sell for up to $599 in premium flavour, which will make it the most expensive game console ever. Mr. Kutaragi said the cost of the machine is not high, but just right.
<%BANNER[article]%>“This is the PS3 price. Expensive, cheap – we don’t want you to think of it in terms of game machines,” said Ken Kutaragi in an interview with with Japanese website IT Media, excepts from which have been published by GameIndustry.biz.
Competing consoles from Microsoft Corp. and Nintendo cost $399 and $199, whereas Sony’s current PlayStation 2 is priced at $129. Typically manufacturers of game consoles do not earn money from selling hardware, but from selling computer games for the machines. Usually companies lose money on selling the first batch of gaming machines, for instance, it is estimated that Xbox 360 premium console costs $525 to build, while Sony’s PlayStation 3 bill of materials may be as high as $900.
No gaming consoles have ever sold for $599, however, Sony’s Mr. Kutaragi believes that users will be willing to pay that high amount of money for the experience of playing the PlayStation 3.
“For instance, is it not nonsense to compare the charge for dinner at the company cafeteria with dinner at a fine restaurant? It's a question of what you can do with that game machine. If you can have an amazing experience, we believe price is not a problem,” Mr. Kuratagi said.
The PlayStation 3 will be launched on 11th of November in