Xbox 360 Could Cost Half As Much As PS3..

Analyst Merrill Lynch have delved into the hardware of two known next-generation consoles, PlayStation 3 and Xbox 360, broken down the console cost part-by-part, and have come to a conclusion so diabolical it seems like perfect Microsoft strategy towards the end of next year, Microsoft could easily sell their console for half the price of the PlayStation 3.

The biggest reasons, according to their breakdown, concern the CPU and the Optical Media Drive. At launch, they estimate Sony’s system costing $495 to manufacture, compared to the $340 for each Xbox 360. Sony is paying $75 more than Microsoft for its use of a Blu-Ray drive, and $60 for its Cell processor. With each console’s launch so far spaced out (at least 7 months, maybe more), the cost decay for the Xbox 360’s parts will lower it beyond the estimated $140 difference, and after 3 years, Merrill Lynch estimates the cost of the PlayStation 3 to be $195, and the Xbox 360 $145.