Sony’s PS3 Could Cost $500 Dollars

The 144-page report, titled The Definition of Insanity: Why The Next Console Cycle Will Start Off With A Whimper, was authored by industry analysts Michael Pachter and Edward Woo, and is a largely positive look at the future of the games industry which projects strong growth over the coming years in most sectors.

However, as the title suggests, it also sounds a number of warning notes regarding the coming hardware transition – perhaps the most surprising of which is the suggestion that Sony’s PS3 could debut at such a high price point.

Pachter and Woo claim in the report that Sony will try to introduce the PS3 with significantly more functionality than current consoles, building on the model of the PSX device – which includes a digital video recorder (DVR), DVD burner and a number of other home media centre style functions.

The report suggests that by late 2006 – generally considered to be the earliest possible launch window for the PS3 – these features will cost roughly $250 to include in a system, leading to a $500 price tag for the next generation console.