Rumor #1: PlayStation 3 to Release at $500+ and Slip to 2007

According to a report from Merrill Lynch, the PlayStation 3 could cost $900 to manufacture and slip to a 2007 release due to production issues.

True or False?

We've known for some time that the PlayStation 3 will be coming in high and hot when it eventually hits retail shelves. It's not out of the question for the PS3 to land at a price above the $500 mark, but it's highly unlikely. At $500 the PlayStation 3 will still sell out during the launch window, but with stiff competition from the Xbox 360 and Nintendo Revolution, launching any higher than that could spell doom for the PS3 launch. It would also not be surprising if Sony came in at $400 to trump the competition and remain sold out for some time after launch.

Sony stated from the beginning that the PlayStation 3 would release in the spring of 2006, but it's just about that time and we've heard nothing from the Japanese giant. Is the original launch window still a possibility? We don't think so, and we can't say until E3 whether or not the console will make a 2006 release. It's possible the PS3 will slip into 2007, but it's very unlikely. At the very least the PS3 will hit Japan later this year, but it would not be in Sony's best interests to give the Xbox 360 two holiday seasons in the US and Europe.

Rumor #2: The Nintendo Revolution Will Release at $200

Nintendo has gone on record stating that the Revolution will release for less than $300, but rumors are circulating that an even lower price point could be planned.

True or False?

The Xbox 360 and the PlayStation 3 are going to cost more than the Nintendo Revolution. That's a fact that few people can argue with. However, the exact price of the Revolution is still in question. Even without high definition capabilities or movie playback, there's a good deal of technology inside of the Nintendo Revolution. The development costs of the system are likely well over $300, but we all know that losses on hardware are a standard in the gaming industry.

Despite the competition and Nintendo's vow for a lower price, it's tough to seethe Revolution releasing at anything under $250. However, a $250 price point would put the Revolution significantly lower than the assumed PS3 price, and at least $50 lower than the Xbox 360 Core Package. That should be enough to move some systems in the midst of dual competition from the Xbox 360 and the PlayStation 3.

Rumor #3: Third Parties Jumping on Xbox Live Arcade

Capcom, Konami, Namco, Midway and several other big name third party developers have already signed on to support Xbox Live Arcade, but rumors state that some huge releases will be coming in late 2006 and early 2007.

True or False?

Capcom is preparing Street Fighter II Hyper Fighting as we speak, so we know the company almost certainly has future plans depending on how well SF2 performs. However, the company also has a puzzle compilation and a Street Fighter Alpha compilation heading to the PlayStation 2 and PlayStation Portable later this year. Having these same games available on the Xbox 360 with assumed Live support could cut into sales on other platforms. It's unlikely we'll see too many titles from Capcom on XBLA until mid-late 2007.

Namco, Konami and Midway are another matter though. Expect to see some mid-90s classics from Midway around the end of the year. Rumors are widely circulating that the first three Mortal Kombat titles will be hitting Xbox Live Arcade to generate hype for Mortal Kombat Armageddon. Namco and Konami also have a line-up of 90s arcade classics that are set to be announced around E3 and release later this year.