Sony’s PS3 Game Plan: $300-$400, Preloaded Content, Blu-Ray

Sony is banking on its much-anticipated PlayStation 3 to be the digital Trojan horse that will allow the company to triumph in the emerging world of personalized, interactive, multimedia products and services.

“The reason Sony has suddenly gained support for Blu-ray is simple,” said a high-level studio executive close to the discussions. “PS3 is a subsidized Blu-ray play that will sell 20 million units. The first HD player will be on the market for $1,000. PS3 could be at $300 or $400. Sony will be selling them at a loss the first six months to a year just to get Blu-ray players out in the market. So studios realize they need to have their content on it.”

PS3 will roll out at a loss for the first six months, then rapidly turn profits on game-license fees. PS3 will be bundled with a selection of preloaded films, TV programs and games and sell for between $300-$400. Sony’s other secret weapon, which also will be showcased in PS3, is the CELL microprocessor.. ..35 times faster than the processor in PS2; it offers twice the processing power of Microsoft’s new Xbox 360 and 10 times the power of a standard PC..

HollywoodReporter - Stringer banking on HD strategy for Sony rebound