PS3 With Smaller Cell to be Profitable, When It Comes Out
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Nikko Citigroup expects the PlayStation 3 to break even before schedule, smaller Cell processor
The PS3 is still expensive for most people. It's not too bad right now, but there are undoubtedly a list of reasons why not to pick one up over the rival Xbox 360 (at least in the US). But with it's booming growth overseas and the 360's stale near-complete uselessness in the Japanese sector, the PS3 is set for a comeback.
To further that point, Nikko Citigroup, Citigroup's Japanese section if you will, points out that their analysts find the PS3 to break even and become profitable sooner than expected, based mainly on the smaller Cell processor, which is cheaper to manufacture and has more chips per board (for those who don't know, CPU's are made on large boards then cut out, meaning if the CPU is smaller, the board will have more CPU's available to cut out).
It really shouldn't be surprising, considering how the PS3 is growing tremendously in Europe and has exceptional functionality being built for it there, but the smaller Cell processors will of course be incredibly helpful to Sony because of the lower production costs. If current analysts are correct, the PS3 may catch up to the 360 in sales sometime this holiday season.
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