[citation][nom]dirgle[/nom][citation] When the PS3 first came out the build cost was estimated at $841 for the 60GB unit. But Sony was only going to charge the consumer $599. Sony seemed a little confused when people couldn't see the incredible value this was.[/citation]
And somehow the PS3 is a failure? While its in 3rd place, there are 45million PS3s on the market, 5 million behind the 360. Does that mean 4 years ago, when there were under 20 million units for each of them - that they were failures? NO.
The PS3, like the 360 were originally sold at a loss. The PS3 hit the market 1 year after the 360 and MS had already done a price drop to $400 for the 20GB model. Meanwhile, the 360 was rushed to market in order to capture market share... which is good and bad.
GOOD: it gave MS a 7 Million unit head start. A whole 12 month Christmas season.
BAD: Low quality parts, design defects in the board and cooling system that took YEARS to show up and to fix. How many "suckers" have replaced their 360's 3~6 times?
So during this time, the 360 came and went with HD-DVD - which is an ugly add-on. The built in DVD drive is NOISY. Currently, there are 5 or so Cooling system add-ons for the old 360. These were needed more in the old days.
Value, the PS3 always had more value over the 360. What MS countered with is the $300 HD-LESS 360, which in the real world.. how many PEOPLE actually use such a configuration before pulling out their hair and dropping $80~130 for the HD upgrade?
So... lets go back to NOV 2006.
PS3-20GB = $500. It was the cheapest bluray player on the market. It was a double-sided attack to defeat HD-DVD (success), create a new format (success), make piracy difficult (success) and provide a quiet and large medium to store games. It takes at least 6 double-layered DVDs to equal a single DL BlueRay disc. How many 360 games had to be reduced or spread across many discs? Unlike the 360, the PS3 is a home entertainment system, which MS has just recently claimed (yet 5 years ago, MS said 360 was pure gaming). Where is the bluRay for the 360? For $500, the user got a complete system, no silly power brick, wireless, user upgradeable HD to at least 500GB, backup system, wireless controllers etc.
360-20GB = $400. For a pure gaming system, it WAS cheaper... the controllers were wired back then, and if you needed wireless networking, you lose a USB port and $100. If you wanted HD-DVD, that was another $200. If you wanted the 60GB upgrade, that was $120. Total price: $820+ And if you add your $60 a year Gold membership x 5 years ($300) = $1120+ About double over the cost of a PS3.
And when you got your RROD... well, thats time and energy spent getting your unit replaced.
HD-DVD is dead. But theres more to that in the background. You see, HD-DVD's GUI control was developed by (drum roll)... Microsoft. So a reason MS doesn't want BluRay on their consoles today is because (A) they would be paying SONY $$$ for it, (B) SONY software would be required to be installed (C) it would add $100 to the price of a Xbox360.
As of today, the bottom end PS3 is $300, includes a bluRay player. It has a 160GB HD - but hey.. $350 model PS3 has a 320GB unit or buy your own 500GB drive for $60 and put it in yourself. The price of putting in a 500GB HD into a 360 is... oh wait, can't do that... nevermind. But they'll sell you the 250GB drive for $130 for those poor people who bought the HD-less 360-Slim.
There is a market for all 3 consoles. Teens will mostly gravitate to the 360 more than the adults.