PS3 to lose $1.18 billion unless we cough up?

Merrill Lynch Japan Securities (don't ask me) have surmised that Sony's launch of the PS3 could backfire on the company setting it back $1.18 billion in it's first year of manufacture. Citing the console's per unit manufacturing costs of $500 and it's expected retail price of $399. Yep I was getting bored too, till I read this rebut from Sony's Head Ken Kutaragi

"Whether consumers think a product is expensive or cheap all depends on the balance between its appeal and price. Our idea is for consumers to think to themselves, right, I'll work more hours and buy it."

So start clocking up that overtime and we'll all keep Mr. Kutaragi happy.

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