New Sony Playstation costs over $900

And that’s just for the bill of materials according to a Merrill Lynch analysis published by Engadget. A big item is the $230 allowed for the Blu-Ray drive. Drat. I had high hopes of the PS3 being a cheapish gadget that could be hacked to do useful things. What it means is that if Sony launches the product at an X-Box-level price then they will lose even more money on it than Microsoft does on its product. Gaming is a mad, mad world.