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PS3 manufacturing cost reduced by 35%

by Steven Williamson on 30 December 2008, 15:17

Tags: PlayStation3, Sony (NYSE:SNE), PS3

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According to market research firm, iSuppli, the manufacturing costs of the Playstation 3 have been cut by 35 per cent from $690 to $448.

"A portion of the cost decrease is attributable to normal learning curve and supply/demand factors that bring component prices down over time. A more significant factor is the clever integration of discrete components into the core silicon of the PS3, dramatically reducing the component count. The new generation PS3 contains an estimated 2,820 individual parts, compared to 4,048 in the previous-generation model with a 60Gbyte hard drive. This also dramatically reduces the overall cost of the console," reads the report.

The reduction in cost now means that Sony will only lose $48 each time a console is sold rather than $290. iSuppli believe that this could mean that the "PS3 may be able to break even in 2009."

Source :: iSuppli.com

HEXUS Forums :: 7 Comments

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That is still stupid, why bother making it if they're losing $290 for 2 years was it?
they thought oh we will make loads of games?
They are really desperate for bluray success..
all console makers lose money. thats why the games are so expensive. Think the Wii is an exception though. It does mean they will lower prices soon though :) I really enjoy my 60gb ps3. I bought it for the bluray though. have guitar hero and a few others though so i thought it was worth it and i paid full price!
That is still stupid, why bother making it if they're losing $290 for 2 years was it?


Use DDR3 instead of XD RAM or wotever fancy RAM. Make only 60GB HDD models. Get rid of some other fancy stuff as well.