SGI gives in to the inevitable

Silicon Graphics, once the darling of the computer industry, filed for bankruptcy today. Not that it was much of a surprise, given their $250 million in debt, anemic earnings, and penny stock price. The real surprise is that they held on this long. Apparently, Wells Fargo lent them money last year – in an apparent triumph of optimism over experience.

A small price to pay for that vacant smile on your child’s face

In case anyone is still breathlessly waiting for the Sony PS3:

At a press event at the Electronic Entertainment Expo (E3) video game convention yesterday, Sony said the PlayStation 3 would arrive at market in the States on Nov. 17, and set a price of $499 for the 20-gigabyte system and $599 for its 60-gigabyte counterpart. At $499, the smaller PS3 is $100 more than a fully equipped Xbox 360.
… Even at such dizzying price points, Sony’s still going to take a bath on the PS3.

The estimated total bill of materials for Sony’s next-generation game console will be between $725 and $905, according to various estimates. In comparison, the Xbox 360 from Microsoft comes with a component bill between $501 and $525.

The cost of making game consoles also drops rapidly over time because manufacturers don’t usually upgrade the configurations year after year, while the cost of the components they’re using drop. Merrill Lynch, in fact, estimates that the component bill will drop to $320 in three years, not including the detachable drive.