Yesterday, Merrill Lynch analyst Hitoshi Kuriyama downgraded his rating on Sony due in part to the high costs of developing the PlayStation 3 with its Cell chip and Blu-Ray disc player. A more in-depth report also indicates that Merrill Lynch now expects that the PlayStation 3 will be delayed up to 12 months and that the platform launch could happen as late as early 2007 (somewhat later than what other sources had reported only days earlier).
The report also takes a look at the bill of materials and estimates that it will cost Sony about $800 USD in parts per unit. No surprise but the two most expensive components are the Cell processor ($230 USD) and the Blu-ray player ($350). Even if Sony takes a loss on each unit, anyone wanting one of these better start saving their pretty pennies now!
Note: The ‘More information’ link opens a PDF document.