Sony's NGP console to be more cost effective than previous consoles

The Playstation 3 console and later the PSP portable console were both huge expenses in terms of research and development for Sony. The result were consoles that had high end technology and proprietary parts which also came with high prices when the consoles launched. That apparently won't be the case for Sony's next major game console release, the portable device known officially only by its code name, the NGP (Next Generation Portable).

In an article at the Wall Street Journal web site, Sony's chief financial officer Masaru Kato stated in an interview that the company was taking steps to keeps costs down for making the NGP. While Kato didn't say specifically what the company was planning, the article speculates that Sony could do several things to make the NGP cheaper to produce. That might include using third party chip foundries instead of Sony creating its own semiconductor plant. It might also use third party manufacturers or use already created parts instead of making parts from scratch.

Sony needs to find some way of making the NGP cheaper to produce. Its Playstation unit had to take losses in the first four years of the Playstation 3's lifespan due in part to the large upfront cost to create the console. There's also the fact that the NGP, due to launch late in 2011, is not the only new portable game console in town. Nintendo has just launched the 3DS console with glasses-free 3D gaming. Also smartphones and tablets are increasing their graphics and gaming capabilities every few months.

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14 Comments

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I'm gonna guess that it will still launch for at least $299.
Sony seems to be incapable of learning from past mistakes.

ahhell said,
I'm gonna guess that it will still launch for at least $299.
Sony seems to be incapable of learning from past mistakes.

IMO they should just price it at $250 and just compete with the 3DS already. They need to penetrate the market by getting the PSVITA into as many hands as possible, the games are whats going to make up for their profits in the long term.

When PS2 games start getting ported to this, I won't be able to not buy one. Just like my PSP has basically become home to portable FF7-9.

Narlzac85 said,
When PS2 games start getting ported to this, I won't be able to not buy one. Just like my PSP has basically become home to portable FF7-9.

Also home of SNES Emulators!

Dead'Soul said,
Will probably have:
-dual or quad core arm cpu
-3G and wifi
-an app store
-online multiplayer game support

it has a quadcore gpu and quadcore arm cpu

it also has a 3g and a wifi only version, they also have gps and a front and back facing camera

and it uses psn like all the playstation devices

Surely the market for this kind of thing is finished.
People are not going to pay $50 for a game, now that they are quite happy playing, admittedly lower quality, games on their phones for $2.

Shiranui said,
Surely the market for this kind of thing is finished.
People are not going to pay $50 for a game, now that they are quite happy playing, admittedly lower quality, games on their phones for $2.

This can do both of those.

Sony's playbook:
1. Spend millions on R&D & marketing for a proprietary format.
2. ???
3. Product fails (or does bad).
4. Start again at #1

Could they possibly be wising up?

Caleo said,
Sony's playbook:
1. Spend millions on R&D & marketing for a proprietary format.
2. ???
3. Product fails (or does bad).
4. Blame Hackers/Pirates
5. Start again at #1

Minor correction, I believe you missed something important

Teebor said,

Minor correction, I believe you missed something important

You're going to deny that the pirate market on the PSP isn't huge?

Caleo said,
Sony's playbook:
1. Spend millions on R&D & marketing for a proprietary format.

XBOX 360 discs are a proprietary format.
Wii games are a proprietary format.
3DS cartridges are a proprietary format.

What's your point again?