Who will benefit from the Playstation 3?

Merrill Lynch recently put out a research report indicating the companies that are suppliers to Sony for building the PS3. The main focus of the article was the high production costs of the PS3 and the potential for production delays that could negatively impact suppliers and game publishers.

PS3 Costs at Launch

• IBM Processor $230
• NVIDIA RSX @ 550MHz $70
• Blu-Ray $350
• 256 XDR Main RAM $50
• 6 Ports $5
• Gigabit Ethernet $5
• WiFi 802.11 b/g $5
• Bluetooth 2.0 $5
• Analog IC/ASICs $80
• TOTAL $800

Source: Merrill Lynch

Sony Suppliers

IBM (IBM), NVIDIA (NVDA), and Marvell Technology (MRVL)
Game Publishers
Activison (ATVI), Electronic Arts (ERTS), and THQ (THQI)