PlayStation 3 Manufacturing Costs Down 70%

By Marcus Yam, published on July 31, 2009 at 2:41 PM
Source: Tom's Guide US | Keywords: , , , | Themes: Digital Entertainment, Business
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PS3's gotten cheaper for everyone, but perhaps none more so than for Sony.

The PlayStation 3 was one expensive piece of kit when it came out. It was expensive for consumers at upwards of $600, but it was even more expensive for Sony.

Original estimates by iSuppli put manufacturing costs for the PlayStation 3 at $840.35, making all early sales of the consoles as a negative mark on Sony's books.

In a recent investor call, Sony corporate CEO Nobuyuki Oneda revealed that PS3 manufacturing costs have dropped 70 percent.

"We don't disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule," said Oneda, according to Kotaku. Eventually Oneda said that the overall cost of making a PS3 was down "about 70 percent, roughly speaking."

If iSuppli's figures are right, that means that each PS3 costs Sony roughly $252 to manufacture. Perhaps Sony is making money on each new PS3 sold, if the going rate of $400 holds. Of course, this could also help pave the way for a price cut.

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Comments

scook9 07/31/2009 9:08 PM
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I would welcome cheaper ps3's with open arms, hell, I'd get one for my dad as a blu ray player that I can play on when I want

nirvanabah 07/31/2009 9:09 PM
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*crosses fingers for price cut*
Make it happen, please!

tenor77 07/31/2009 9:15 PM
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I believe the cost is down for sure, but my BS meter is going off on this.

Kinda like that cereal that says "50% MORE INSIDE!! (Than a box half the size)

I think this is against the preproduction models.

cerillian 07/31/2009 9:23 PM
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Personally I would rather have the console price stay the same and see the games become a few bucks cheaper. For me that would be a much stronger intensive to buy a PS3.

anamaniac 07/31/2009 9:24 PM
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LATTEH 07/31/2009 9:24 PM
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Anonymous 07/31/2009 9:29 PM
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Now they can afford to add in PS2 compatibility when they get a price cut. Finally, a PS3 worth buying.

dman3k 07/31/2009 9:30 PM
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cerillian :
Personally I would rather have the console price stay the same and see the games become a few bucks cheaper. For me that would be a much stronger intensive to buy a PS3.

Yes, drop game prices to $5-10 cheaper than the X360 counter parts and also drop BR movie prices too.

p00dl3_h3r0 07/31/2009 9:37 PM
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For real. I don't care how much they claim improvements have been made on he price of consoles. $50 for a game is ridiculously overpriced. It's like going to radioshack and buying 2 AA batteries for $6, when they cost pennies on the dollar to make. Whatever happened to making good games that people actually want to buy to drive up your profit instead of shady ways of bleeding dry an already bleeding industry?

salsoolo 07/31/2009 9:38 PM
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my only problem is ps3 games are little expensive.

jerreece 07/31/2009 9:38 PM
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I can't imagine paying $400 for a PS3. Even if they drop to $350, I still can't imagine buying one.

All I'd use it for anyhow would be Blu-Ray. So I'll just continue waiting for Blu-Ray prices to drop.

megamanx00 07/31/2009 10:07 PM
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It's way past time for a price drop on the PS3. I still wouldn't buy one though as it's clearly lost this generation of counsel war. I'd rather spend the money to upgrade my PC ^_^.

Anonymous 07/31/2009 10:22 PM
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I would pay the 400 if they put the backward compatibility back in and had a 120 gigabyte hard drive like the 360 has.

bk420 07/31/2009 10:29 PM
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70% cheaper to build...Same old price.

mlopinto2k1 07/31/2009 10:34 PM
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Man, I don't know where half of the users who comment get their information but Jesus H Christ... Sony is NOT going to drop the prices on the CONSOLE anytime soon. They were LOSING money when they first started selling the damn thing in the first place! This whole entire time they have been losing money and now that some information has been made public about the cost to manufacture, everyone is up in arms. The unit has, say it with me, "PROPRIETARY HARDWARE" in it. THAT is what COSTS so much to produce. The damn thing is one of a kind. Sony, do what you gotta do. :o)

IzzyCraft 07/31/2009 10:55 PM
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How about they pass those saving on to us and lower the price of it by 50%

IronRyan21 07/31/2009 11:40 PM
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anamaniac :
Can't like hell understand what makes them so expensive to produce in the first place... Maybe they should have gotten better contracts...



I agree, For $840? You can build a good gaming machine for tht price and top the PS3 easily.

pender21 08/01/2009 12:05 PM
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dman3k :
Yes, drop game prices to $5-10 cheaper than the X360 counter parts and also drop BR movie prices too.



Not happening, Blu Ray Discs are still more expensive to produce and stamp than DVDs.

pender21 08/01/2009 12:08 PM
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Also, Why lower the price of games? We want the best incentive for developers and publishers to make games. If they cut the price, that means less revenue for the developers, so they cope by making less quality games by cutting their staff or reducing project time. Not good for the consumer in the long run.

Cut the price of the console. Games are where the money is made for Sony too. Razor and Razor blade model.

anonymousdude 08/01/2009 12:40 PM
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pender21 :
Not happening, Blu Ray Discs are still more expensive to produce and stamp than DVDs.



Then explain to me why 360 games cost the same $60.

mlopinto2k1 :
Man, I don't know where half of the users who comment get their information but Jesus H Christ... Sony is NOT going to drop the prices on the CONSOLE anytime soon. They were LOSING money when they first started selling the damn thing in the first place! This whole entire time they have been losing money and now that some information has been made public about the cost to manufacture, everyone is up in arms. The unit has, say it with me, "PROPRIETARY HARDWARE" in it. THAT is what COSTS so much to produce. The damn thing is one of a kind. Sony, do what you gotta do. )



Dropping the price would sell more consoles increasing its user base which leads to more money for developers who would in turn make properly coded games for the PS3.

eklipz330 08/01/2009 12:54 PM
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there will be a slim, and there will be a price cut before the year ends. the bundles that are out right now will be obsolete next year, but we'll have a $300 ps3 on the market

hakesterman 08/01/2009 12:58 PM
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Anonymous 08/01/2009 1:33 AM
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Hankesterman you sire are a complete tool. At least you could get some of your facts straight lol duhhhhhh.

jamez45 08/01/2009 1:37 AM
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Most games look better on a high pc than on a ps3. It looks so much sharper with much better textures.
Huh? a ps3 has like 512mb of ram... i don't see many pc's with that nowadays...
Yeah consoles are better optimized for their less powerful hardware but pc's are just much more powerful now and still produce a better image. A ps3 is powerful, but the graphics card in that does not beat a 4870x2 or a gtx295 or the new line of direct x 11 cards soon to be coming out.
And the cell only had one main core, while intel will be bring out a fully fledged 8 core with 16 threads processor soon on a 32nm process. The cell isn't going to beat that...

Thorfkin 08/01/2009 1:43 AM
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Where did you get that load of shi, , misinformation hakesterman? First off the RSX graphics processor in in the PS3 is roughly equivalent to a direct X 10 graphics card in a PC as far as what effects it can render. Most games on the PS3 render at somewhere between 600 and 720 vertical and then get upscaled to fit the system's 720 or 1080 resolution. Very few of the PS3's games are actually rendered at 1920x1080 if any at all. I have a Radeon 4850 in my PC that currently runs for $129 on Newegg and I play Crysis on it at 1680x1050 resolution at maximum detail and the 4850 is considered the low end of the gaming range of cards. The PS3 can't come anywhere close to that. The PS3 has 256 megs or system memory and 256 megs or gddr3 video memory. My PC has 4 gigs of system memory currently available for about $50 and my video card has 512 megs of gddr4 video ram. Consoles are NOT designed to be better than the current generation of PC hardware and never have been. Consoles are designed to be cheap and easy to use for people who can't afford or aren't interested in PC gaming. The PC I had 4 years ago still makes the PS3 look like a joke. Don't get me wrong, I love my PS3. I never get enough of spending an afternoon with my friends kicking back and playing Wipeout HD or Street Figher 4. But the simple fact of the matter is the $400 PS3 is about equivalent to a cheap ass $400 PC with a mid range graphics card.

n8dogg 08/01/2009 1:59 AM
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Good god hakesterman, the gpu in the ps3 is equivilent to a 7900gt, one of which you can buy for $70. You should lay off the retard sandwiches

jamez45 08/01/2009 2:05 AM
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The xbox also has more general processing power than a ps3 because it has a tri core processor unlike.

Considering the frame rate issues PS3 gamers have suffered through over the years, it should come as no surprise that id Software's RAGE is the latest title that is currently running faster on Xbox 360. In a 10-page cover story with Edge magazine, John Carmack reveals that RAGE is currently running at 60 fps on PC and Xbox 360, while the PS3 port is running around 20-30 frames per second. From CVG:
"The PS3 lags a little bit behind in terms of getting the performance out of it," John Carmack told Edge. "The rasteriser is just a little bit slower - no two ways about that.

"The RSX is slower than what we have in the 360. The CPU is about the same, but the 360 makes it easier to split things off, and that's what a lot of the work has been, splitting it all into jobs on the PS3," he said.

The RSX GPU inside the Xbox 360 is most often compared to NVIDIA's GeForce 7800 GTX, albeit with a narrower 128-bit memory interface. In comparison, the Xenos GPU inside the Xbox 360 is more comparable to a Radeon X1900 GPU, although Xenos isn't really an X1900 derivative due to Xenos' unified shader architecture, 128-bit memory interface to graphics memory, and 10MB of embedded memory (among other things).

jamez45 08/01/2009 2:08 AM
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jamez45 :
The xbox also has more general processing power than a ps3 because it has a tri core processor unlike.Considering the frame rate issues PS3 gamers have suffered through over the years, it should come as no surprise that id Software's RAGE is the latest title that is currently running faster on Xbox 360. In a 10-page cover story with Edge magazine, John Carmack reveals that RAGE is currently running at 60 fps on PC and Xbox 360, while the PS3 port is running around 20-30 frames per second. From CVG:"The PS3 lags a little bit behind in terms of getting the performance out of it," John Carmack told Edge. "The rasteriser is just a little bit slower - no two ways about that."The RSX is slower than what we have in the 360. The CPU is about the same, but the 360 makes it easier to split things off, and that's what a lot of the work has been, splitting it all into jobs on the PS3," he said.The RSX GPU inside the Xbox 360 is most often compared to NVIDIA's GeForce 7800 GTX, albeit with a narrower 128-bit memory interface. In comparison, the Xenos GPU inside the Xbox 360 is more comparable to a Radeon X1900 GPU, although Xenos isn't really an X1900 derivative due to Xenos' unified shader architecture, 128-bit memory interface to graphics memory, and 10MB of embedded memory (among other things).



But an xbox is also far behind a pc though.

totaldarknessincar 08/01/2009 2:35 AM
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michaelahess 08/01/2009 3:27 AM
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Bought both of mine brand new for $250, just gotta know where to look, and when....so this news is pointless to me.

ubernoobie 08/01/2009 3:35 AM
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cmon sony get moar money so i can buy it and you guys can lower price to start the play station 4! :D


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