Sony is, they know they can't bleed MS to death by underpricing/dumping the
PS2/3 (MS is losing a billion bucks a year on the Xbox - at this rate,
they'll be broke by A.D. 2400!) Chips are cheap. HDs are expensive. My
guess is they'll be using something like Flash memory in the nextgen
consoles. Like the hoary razor-blade paradigm, the h/w will come down to
$100 and they'll have to score some MAJOR hits with $25-$40 games. This is
where Sony shines...and where MS is weak. Which is why Sony will rule the
currently contested turf, and MS will move upscale, positioning the Xbox 2
as a living-room device, a PC-TV convergence appliance. Can MS succeed
here? Watch BMW and wireless convergence devices (cells, PDAs). If MS can
get BMW's UI back on track, they might be able to win the battle for yer
couch.
> >My sources say MS wants the Xbox Next (i.e., Lite, w/o a HD, with a lower
> >price point) in stores before Xmas. That would tend to indicate both the
> >PS3 and the Xbox 2 (Internet Appliance/Set-Top Convergence Duz-All) will
> >roll out before Xmas '04. Exciting times, huh?
> Damn.
> The other thing I'm wondering is how much a machine with 72 RISC chips
> is going to cost. Even if they sell at half or one third of the cost
> to build, that's got to be like $3k to 4k at least... Not to mention
> the cooling requirements, the mainframe-sized case, etc. Sounds like
> a killer machine if what they're proposing is true, but just looking
> at how much similar RISC solutions (well as close as we can get, like
> a fully loaded Sunfire) cost, I dunno.
> Jason