"TOKYO (Reuters) - Sony Corp (NYSE:SNE - news). is removing a chip from the European version of its new PlayStation 3 (PS3) game console, a move that cuts costs but means users cannot play some of their old games.
Sony shares rose nearly 3 percent after the news, which is expected to expedite efforts by the Tokyo-based electronics and entertainment conglomerate to turn its PS3 operations profitable -- a focus for investors.
Sony, locked in a three-way battle with Microsoft Corp. and Nintendo Co. Ltd. for dominance of the $30 billion video game industry, now makes a loss for each PS3 it sells.
Both Nintendo's Wii and Microsoft's Xbox 360 are cheaper than Sony's latest PlayStation and have been outselling it, although the Xbox 360 has been on the market longer.
The PS3 is to go on sale in Europe on March 23, following its North American and Japanese launches late last year.
Unlike the PS3 being sold in the United States and Japan, the European version will not carry a Sony-made microchip that offers graphic- and data-processing functions for PS2 games, cutting production costs, said a spokesman for game unit Sony Computer Entertainment (SCE).
The console will still be equipped with a different chip that processes graphics for PS2 games, but the backward compatibility of the machine will be lessened, the spokesman said.
Sony packs the PS3 with its cutting-edge technology such as a Blu-ray high-definition DVD player and the Cell microchip, dubbed a "supercomputer on a chip," which provides lifelike graphics and high-speed downloading of game software and video clips.
But they have driven up production costs, dragging Sony's game operations into a deep loss for the business year ending March 31.
Sony said in January it expected losses in its game unit to exceed its previous estimate of 200 billion yen this business year, but would aim to break even on games in the year starting April 1.
In another cost-cutting measure, Sony is planning to introduce Cell chips with circuitry width of 65 manometers this year, replacing the current 90-nanometre ones.
Narrower circuitry makes microchips smaller, cutting per-chip production costs. A nanometer is one billionth of a meter.
The basic model of the PS3 sells for 49,980 yen ($426.5) in Japan and $499 in the United States, double the price of Nintendo's Wii.
Sony saw its television business posting a profit for the first time in two years in October-December, making its game division's profitability the biggest concern for investors.
Shares in Sony closed up 2.8 percent at 6,160 yen, outpacing the Tokyo stock market's electrical machinery index IELEC, which rose 1.22 percent.
yeap, more cheaper processors as well as non backwards compatibility.
i guess if this is successful in europe, maybe the ps3 will have a hardware cut plus a price cut in japan and the u.s too? lucky me, if it ever happens, i still got the 90 nanometre one with backward compatability
if they eventually stop selling 90 nanometre ps3's with backwards compatability, does this mean that us who already have it before it gets cut are using limited special edition ps3's =o!!!!
honestly, its not that big of a deal to not play some of ur old ps1 or ps2 games? is it? i mean its all about next gen, u know, new games , new developers are coming up and makin game, hell i think games coming out for this new gen, are gonna be sooo good, that it will make u forget about the old games, besides ur not really gettin a new gen to play old games that u have are u lol?
so let me get this......i live in italy...my ps3 wont be able to play anygame for ps2 and ps1? and my ps3 will cost more than the one you guys got in the us??? wtf.. (because 599 euros is more than 599 $)
they are using software emulation just like the 360 and still have more games that are compataible over 1000 ps2 games so its not a big deal and less heated playstations are good ones i look forward to putting the ten years life into test on the 23rd
yeap, more cheaper processors as well as non backwards compatibility.
i guess if this is successful in europe, maybe the ps3 will have a hardware cut plus a price cut in japan and the u.s too? lucky me, if it ever happens, i still got the 90 nanometre one with backward compatability 1deag
do people know how to read? why do people act like there will be NO backward compatibility?
so let me get this......i live in italy...my ps3 wont be able to play anygame for ps2 and ps1? and my ps3 will cost more than the one you guys got in the us??? wtf.. (because 599 euros is more than 599 $)lazzy102
incorrect. The PS3 will still play almost all PS1 games and over 1000 PS2 games at launch. The list will become greater as Sony finishes their software emulation package.
[QUOTE="lazzy102"]so let me get this......i live in italy...my ps3 wont be able to play anygame for ps2 and ps1? and my ps3 will cost more than the one you guys got in the us??? wtf.. (because 599 euros is more than 599 $)eclipsed4utoo
incorrect. The PS3 will still play almost all PS1 games and over 1000 PS2 games at launch. The list will become greater as Sony finishes their software emulation package. Exactly and i bet that the games the european PS3 can emulate it's the games that most ppl have, but they are some persons that appears to think that without the emotion chip the PS3 will not run the PS1 and PS2 games and that is wrong
I dont think that BC is going to be much of a problem, sure maybe your ancient copy of The Bouncer wont work but newer, better titles will be fine.
I think the UK price may drop from £424.99 to £399.99 within its first 12 months just to knock it under that rather harsh £400 psycological barrier. I do not think The PS3 will go under any dramatic price drops for a few years yet.
i would be alot happier if the price cut actually happens. i dont care of the ps3 plays ps2 games or not beacause i already own a ps2 console and its working perfectly.
[QUOTE="eclipsed4utoo"][QUOTE="lazzy102"]so let me get this......i live in italy...my ps3 wont be able to play anygame for ps2 and ps1? and my ps3 will cost more than the one you guys got in the us??? wtf.. (because 599 euros is more than 599 $)ratomon
incorrect. The PS3 will still play almost all PS1 games and over 1000 PS2 games at launch. The list will become greater as Sony finishes their software emulation package. Exactly and i bet that the games the european PS3 can emulate it's the games that most ppl have, but they are some persons that appears to think that without the emotion chip the PS3 will not run the PS1 and PS2 games and that is wrong don't forget about upscaling also. with software emulation, it is possible for the PS1/PS2 games to be upscaled. this is great for HDTV owners.
the ps3 will not be cheaper in europe. They remove the chip so they will not lose to much money, that´s why. It doesn't help us costumers, it helps them.
the ps3 will not be cheaper in Europe. They remove the chip so they will not lose to much money, that´s why. It doesn't help us costumers, it helps them.agent_029
here is a list of parts and costs in the us for there ps3
IBM Cell processor $89
Nvidias RSX chip $129
EE Graphics synthesizer $27
power supply $38
blu-ray optical drive $125
cooling and the mounting cage for motherboard $22
XDR memory $48
SATA hard drive $43
additional components, casing and manufacturing costs $319
=$840 to make and retailing it in America at $599 means there losing $241 on each ps3 and in uk its about break even so there not making any money on the ps3 so far plus i heard a rumour the using emulation software they can increase graphics and loading speed
I heard that God of War doesn't work with EU PS3. Maybe they will fix it before launch but what if they don't? Okami doesn't work either right now btw. Those are 2 pretty big titles guys!Â
[QUOTE="danneswegman"]so will the europeaon launch PS3 be cheaper??-Reggaeton-
I won't believe this thread, because i've just pre-ordered a PS3, for exactly 600euros.
dude, you got ripped off, it's only 599 euros in euro territories :D
Its 650e here in Finland, + another 50e for per-ordering it :D:D:D Im buying mine online... well, it's only 556€ in Switzerland :D @Zimon They are testing those games with firmware 1.50 while US/Japanese PS3s are running 1.54. I'm actually surprised any game worked. Sony said they'd preload PAL PS3s with the latest firmware (which could be the update US/Japan will get closer to PAL launch)
I heard that God of War doesn't work with EU PS3. Maybe they will fix it before launch but what if they don't? Okami doesn't work either right now btw. Those are 2 pretty big titles guys! Zimon
if you are refering to the German article which tested 12 games and only one worked(Eragon), the PS3 that was used is only on firmware version 1.50, which is old. Sony hasn't released the software emulation package yet. Let Sony released that and then we will see what games work.
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