Just how far away is PlayStation 3? Another $1.7 billion in CELL research pledged by Kutaragi
As Microsoft browses off the shelf processors, Sony turns to alchemy.
Sony executive deputy president Ken Kutaragi has made some revealing pledges relating to the firm’s planned investment into the CELL processor, the mysterious chip that will power the PlayStation 3, when it launches in several years time.
Kutaragi said that Sony is poised to invest a staggering 500 billion yen into processor development in the coming years, and even more impressively, he pledged 200 billion yen to the CELL project, a figure equating to $1.7 billion. If anything, this illustrates just how crucial the PlayStation 3 project is to the future of the entire Sony empire.
"The Sony group as a whole procures about 1 trillion yen worth of semiconductors annually, and the amount will probably keep increasing in the coming years”, Kutaragi stated.
This news has again rattled analysts, as it seemingly pushes back the projected release date of Sony’s next home console. There is also concern for Sony’s massive market share it now enjoys as the price of the PS3 looks set to skyrocket in comparison with Microsoft’s offering.
Indeed, the Xbox 2 will almost certainly have an off the shelf high-end Pentium processor, that will simply involve buying units from Intel, and applying them to the new machine, a massive saving that can, and will, be passed down to consumers.
Kutaragi also said that if the PlayStation 2, and the new model of the machine in its irresistible new PSX guise, goes above its projected revenue in the next eighteen months, more than 200 billion yen would be pumped into CELL. However, what Sony must understand is that this money, an absolutely unparalleled amount to plough into the R&D for a games machine chip, must eventually be recouped from the consumer. If PS3 costs so much more to develop than Xbox 2, doesn’t the firm run the risk of leaving itself no option but to price itself out of the market?
We’ll bring you everything on all next-gen movers and shakers, right here, as it breaks.
Kutaragi said that Sony is poised to invest a staggering 500 billion yen into processor development in the coming years, and even more impressively, he pledged 200 billion yen to the CELL project, a figure equating to $1.7 billion. If anything, this illustrates just how crucial the PlayStation 3 project is to the future of the entire Sony empire.
"The Sony group as a whole procures about 1 trillion yen worth of semiconductors annually, and the amount will probably keep increasing in the coming years”, Kutaragi stated.
This news has again rattled analysts, as it seemingly pushes back the projected release date of Sony’s next home console. There is also concern for Sony’s massive market share it now enjoys as the price of the PS3 looks set to skyrocket in comparison with Microsoft’s offering.
Indeed, the Xbox 2 will almost certainly have an off the shelf high-end Pentium processor, that will simply involve buying units from Intel, and applying them to the new machine, a massive saving that can, and will, be passed down to consumers.
Kutaragi also said that if the PlayStation 2, and the new model of the machine in its irresistible new PSX guise, goes above its projected revenue in the next eighteen months, more than 200 billion yen would be pumped into CELL. However, what Sony must understand is that this money, an absolutely unparalleled amount to plough into the R&D for a games machine chip, must eventually be recouped from the consumer. If PS3 costs so much more to develop than Xbox 2, doesn’t the firm run the risk of leaving itself no option but to price itself out of the market?
We’ll bring you everything on all next-gen movers and shakers, right here, as it breaks.
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