Sony's PlayStation 3 launched today; in the custom of the day, they had midnight launches for the coveted critters.
Sony is sure to rake in millions of dollars in revenue on Friday alone, with some 400,000 units expected to be available one week after an initial launch in Japan. Depending on the size of its hard drive, each PlayStation will sell for $500 or $600.
But Sony is expected to lose money initially on each sale of the PS3, which in addition to playing games, can surf the Web, download video and music and play movies with its Blu-ray high-definition disc drive. The Blu-ray player and other components have run up production costs, dragging Sony's game unit into a deep loss for the year to March.
I'm not a gamer, so I'm a bit lost as to why these game boxes are flying off the shelves for $500, when you can get a whole brand-new computer system for less. It might be the hi-def Blu-ray stuff that will make pictures a notch crisper than before. There's even a scalper market developing.
Even John Edwards, the former senator and VP nominee, caught the PS3 bug and was after one for his kids; one of his staffers did a major faux pas in heading to Wally World for the ex-senator while he was in the middle of a Wal-Mart bashing campaign.
It's interesting that Sony claims to be losing money on the systems. They might make their money on the games; once they've locked into the PS3 system, they need to buy PS3 games.