We don't mean that Blu-ray is getting cheaper... we mean that the blue ray diodes are growing significantly less expensive to manufacture. According to the Sony Shiroishi Semiconductor Inc. subsidiary, they've ramped up production of those tricky diodes to a 1.7 million unit per month goal. That's pretty good -- Sony is banking on future demand for blue diodes what with the Blu-ray format gaining ground in the HD format wars.Starting in June, the blue-violet laser diodes will only cost 900-ish yen to produce (about $8). Last year, the Blu-ray player itself was estimated to cost $125 -- a good chunk of that was probably the diodes. Along with this major cost decrease, some analysts are saying this bodes well for a PS3 price cut this year. Wedbush Morgan Securities analyst Michael Pachter said this on the subject: "God knows whether they will, but lower costs usually lead to lower prices. The right question to ask is whether the full bill of materials is below $499, allowing them to cut price and still avoid losing money. I'm not competent to answer whether it is, but I am competent to say that when cost is below $499, we should look for a cut to that level."
He says that he could see one before the end of the year, probably bringing the 60GB PS3 right along the same price as the 360 Elite. Who wouldn't want wireless and a Blu-ray player for just $20 more? Along with better first party titles and the same multiplatform games over the next year? That's right. Only a crazy, crazy fool.
