Business analysts working at investments firm Merrill Lynch have been speculating this week over the likely cost of the PS3, and its impact on Sony, and the gaming as a whole. Perhaps the most interesting suggestions surround the likely pricing of the new system, which is expected to cost $494 for to make. With this in mind, Sony are expected to loose nearly $100 US per system, selling at $399 at retail. The Cell processor, NVIDIA GPU and of course the Blu-Ray drive are each expected to set Sony back in the region of $101, plus of course all the other costs of creating a next-generation piece of hardware.

Whilst Sony have remained tight-lipped on likely pricing, the system will only sell for a little less than it costs according to the firm. Ken Kutaragi has not revealed an official RRP yet, and the Japanese giant will no doubt wait for to play their hand before committing to any figures. The is rumoured to be selling for $299 at launch. More soon.

By Luke Guttridge