According to Ken Kutaragi, the head of Sony Computer Entertainment,
the Playstation 3 will no longer function as a router because that
functionality would have made the PS3 too expensive to manufacture. It
is unknown if this means that the PS3 will only have one Ethernet port,
instead of the current three. Sony has hinted that they will have other
uses for the Ethernet ports, such as connectivity for a camera, so they
might keep as least two of the three Ethernet ports, one to connect to
the camera, and the other to connect to the users’ home network, via
their own router, a device becoming ubiquitous in many households with
broadband internet service.
Directly this change will have little impact on sales, however, it
has significant implications. This decision shows that Sony is looking
for any way to cut costs for the Playstation. Typically most consoles
cost more to manufacture than the retail price, until the company
achieves economies of scales, and can generate profits. So far, there
has been no announcement for the retail price, or for the manufacturing
costs. However, sources have indicated that the PS3 will probably be
priced at $399, and cost $500. As result of this large difference, it
might be difficult for Sony to achieve economies of scale, and thus are
looking to cut costs, and this could potentially lead to an inferior
quality device.
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