June 30, 2005

Sony PlayStation 3 to Retail at $400, Sony to lose $1.18 Billion on PlayStation 3 or PS3

According to Merrill Lynch Japan Securities, Sony is set to lose around $100 per PlayStation 3 console, even with a $400 price tag.

Analysts believe that production costs is around $500 (per console), with key components (Cell Processor, RSX and BD ROM drive) averaging over $100 each to make. Merrill Lynch claims that SCE is likely to sell the PS3 at $399 in the US and $410 in Japan, figures that project a loss of around $1.2 billion in the first year the machine is on sale.

By the time the PlayStation 3 launches, Microsoft may have had a year with its Xbox 360 on sale, probably at $299.

PlayStation 3, SCE chief Ken Kutaragi said "Whether consumers think a product is expensive or inexpensive depends on the balance between its appeal and price. Our goal for PlayStation 3 is for consumers to think to themselves, 'I will work more hours to buy one.' We want people to feel that they want it, irrespective of anything else."

Kutaragi continued, "Nintendo was selling its 16-bit machine for $114 and we sold the first PlayStation for $364. The press said that it was too expensive, but it was a huge hit. The story is the same with the PlayStation Portable from last year. The Game Boy Advance is a handheld gaming machine, and it costs $91. The PSP had cost $229. But people queued up overnight to buy it, and it sold out on launch day. It depends whether people want it and naturally I'm confident that the PS3 is a product that people will definitely want."

June 27, 2005

Motorola E895

Motorla has announced the E895, a new handset that delivers a robust suite of intuitive multimedia tools to capture everyday escapades including a 1.3 megapixel camera, video record and playback and optional removable memory.

June 15, 2005

Ericsson, Napster to Launch Music Service

Swedish Wireless equipment maker LM Ericsson and online music distributor Napster Inc. will offer a digital music service that will let consumers download music to mobile phones.

The announcement came as wireless providers and device makers rush to deliver music, video and ringtones to mobile phones, viewed by many as the next medium of choice for entertainment reports WP.

Motorola Inc. plans to launch a cell phone that can buy and play songs from Apple Computer Inc.'s iTunes. It was supposed to have been unveiled in March, but was postponed at the last minute, fueling speculation that a wireless service provider had become involved

June 8, 2005

American Express introduces 'contactless' cards

Monday, American Express said it will begin issuing credit cards with ExpressPay. Expresspay will allow payment to be authorized in seconds and will not require a signature. You wave your card in front of a sensor to make payments. The new cards offer a function already common at many U.S. gas stations. They are an alternative to the traditional cards that are swiped through a machine that reads information embedded in a magnetic strip.

American Express said test results showed that, on average, ExpressPay transactions are 63 percent faster than using cash.

Siemens and BenQ to forge partnership

The Taiwan-based BenQ Group, will acquire Siemens' entire mobile phone business with more than 6,000 employees worldwide. The business will be headquartered in Munich. The closing of the deal is expected in the fourth quarter of Siemens' fiscal year 2005. Siemens will invest in BenQ by purchasing shares of the company. In addition, the transaction also includes the rights to the brand and name, which BenQ will be allowed to use for a total of five years.
With this acquisition, BenQ will advance to become one of the world's leading mobile phones vendors. The two partners complement one another ideally in their strengths. In addition to its GSM mobile phones activities, the Taiwan-based company is also a leading vendor of consumer electronic products, such as LCD screens, notebook computers, cameras and scanners. The acquisition will strengthen BenQ’s GSM mobile phones business. BenQ intends to expand mobile devices into a core business in the future.