Dailytech "Sony begins PS3 component testing"

[superguy]

http://www.dailytech.com/article.aspx?newsid=1910

Hmm, they dont seem very sure it's coming out this year..bunk or legit concern?

 

[superguy]

Basically the linked articles sources are

Here

http://www.xbitlabs.com/news/multimedia/display/20060421072209.html

And here

http://www.digitimes.com/bits_chips/a20060420A5020.html

They also mention the idea that Sony may purposely limit supply to limit early losses..first I'd heard of that.

 

[Legend]

isn't this old news? I read about the same Chinese/Thiland sources a while back. I think they were talking about the same thing. or am I thinking of something else?

 

[Titanio]

http://www.dailytech.com/article.aspx?newsid=1910

Hmm, they dont seem very sure it's coming out this year..bunk or legit concern?

Well, they can't seem to make their minds up:

this points to a sign that Sony may meet its intended 2006 holiday season launch.

Some analysts are predicting that while Sony may have begun testing PlayStation 3 components, it may be too late to meet the holiday launch.

Neither of the other articles suggest that, so I'm not sure where they're getting "some analysts" from. I'm not an expert, but it strikes me that if they're testing now, they're doing it in plenty of time for a Nov launch, and late summer/early fall manufacturing.

 

[Farid]

Unrelated...

The Anand's forums seem to remain true to their reputation.

By the way, these ICs produced by KYEC are used to test the chips on the assembly lines, IIRC.

 

[Nesh]

They also mention the idea that Sony may purposely limit supply to limit early losses..first I'd heard of that.

Actually it always happened. Thats what actually happened in every launch thus the limited supply.
Some translated it as a strategy to create demand but thats simply stupid. Its actually cost minimization.

 

[Edge]

What economics did you guys study in school? More production equals lower costs.

Initial supply is short due to the ramping up of production, which takes time. Limiting suppy sends a portion of those customers to competing consoles. Companies know this very well, and try very hard to meet demand. Holding supply back is a fantasy created in the minds of those who play too many video games.

That Dailytech article butchered the original articles. Component testing is an ongoing process, and has been going on for awhile now. They don't wait for all components to be finished before testing. The main component probably being tested is RSX.

 

[scooby_dooby]

When did Sony start component testing for PS2?

 

[Titanio]

When did Sony start component testing for PS2?

Presumably when they started manufacturing PS2 components.

Component testing is the last step in the chain before components are sent for final assembly in the box, as far as I know. It's an on-going process, it's not something that happens once-off when designing a system. Every single chip in every single system is tested.

All the article says is that KYEC has some sample PS3 chipsets that it is testing in advance of expected orders that may be made as early as next week. They're probably using those samples to work out their testing process for those orders. It suggests these orders may ramp from this quarter onward. It's a good sign, I think.

 

[Platon]

What economics did you guys study in school? More production equals lower costs.

Exception of the rule would be in the beginning of that process though. If you have yields that are 20%, that is a huge cost, and producing more will not significantly make things cheaper, since 80% of your chips are crap and that is silicon you will have to pay for anyway...

 

[Edge]

Exception of the rule would be in the beginning of that process though. If you have yields that are 20%, that is a huge cost, and producing more will not significantly make things cheaper, since 80% of your chips are crap and that is silicon you will have to pay for anyway...

The assumption being that yields are poor. Generally they are, but we don't know what the yields are, and yes they do take time to improve, but no question it's in Sony best interest to meet demand, and to ramp up production as fast as possible to meet that demand.

 

[Titanio]

Exception of the rule would be in the beginning of that process though. If you have yields that are 20%, that is a huge cost, and producing more will not significantly make things cheaper, since 80% of your chips are crap and that is silicon you will have to pay for anyway...

What fixes that? More production. Practice makes perfect. Waiting for something to happen isn't going to work

 

[Nesh]

What economics did you guys study in school? More production equals lower costs.

Initial supply is short due to the ramping up of production, which takes time. Limiting suppy sends a portion of those customers to competing consoles. Companies know this very well, and try very hard to meet demand. Holding supply back is a fantasy created in the minds of those who play too many video games.

That Dailytech article butchered the original articles. Component testing is an ongoing process, and has been going on for awhile now. They don't wait for all components to be finished before testing. The main component probably being tested is RSX.

Economies of scale also take time. They cant just force their production to make a supply of huge numbers in a short period of time and expect costs to fall proportionately fast in the same period.

In the short run there is less variability in some forms of cost. Many costs are leading towards fixed in the short run. A firm has more ability to reduce cost in the long run.