According to Merill Lynch, the Playstation 3 will cost Sony an incredible $900 per unit at launch. The IBM Cell Processor and Blu-ray drive alone account for over 60% of the total. All parts add up to only $800, but if you look closer, a price isn’t listed for the detachable 2.5″ HDD which may account for the remaining amount. In addition, the RSX GPU is priced at an incredibly low $70. Will this be the most expensive gaming console ever made (besides the Neo Geo)?
Lynch calls it an “expensive and difficult-to-manufacture product” because of the Cell processor and Blu-ray drive, which account for the lion’s share of the backend parts costs (see above).