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PS3 Now $300 Cheaper to Make

At the very beginning of the console’s life cycle, it was pegged as a loss leader for Sony.   This original assessment was further confirmed by the research firm iSuppli, who are famous for “teardowns” for consumer electronics.  By an original estimate in November 2006, the 60GB PlayStation 3 cost Sony $840 to build while only selling for $599. 

As manufacturing processes and technology improve, the cost of construction also diminished.  However, iSuppli has recently updated its estimates for the actual cost of the PlayStation 3 reports that it costs Sony $448 to build the 80GB PlayStation 3 while its MSRP is currently $3

99.

Sony has been selling its lead console at a loss now for two years, and according to iSuppli, it may finally reach the break even point in 2009.  One of the key differences iSuppli found in its latest teardown of the PlayStation 3 is that Sony has been switching to integrated solutions for its chipsets; by iSuppli’s estimates, this amounts to a 30 percent reduction in parts used from the first generation of the console.

Overall, as the main component chips such as the Cell Processor and the Nvidia GPU come down in price, so do the total cost of the console.  Analysis also noted that power consumption was lower across the board on the latest hardware revisions of the PlayStation 3, which results in a greener PlayStation experience.

Whether or not the continued decline in manufacturing costs will translate to a lower MSRP for consumers is unknown. Sony has gone on record to say that there will be no price cuts on any model of the Playstation 3.  Current rumors are that prices cuts may be coming for Europe in March 2009, which Sony declined to confirm.

The PlayStation 3 has been a steady, but not stellar, performer for Sony during this generation of gaming consoles.  It’s currently placed last in the console race but is far from being lost. Sony originally envisioned the PlayStation 3 as a gaming console that was built for the future, and it was to last for the next ten years (according to the keynote speech given by Ken Kutaragi at the 2006 TGS).

  • christian summer
    so you are telling me that i clicked on this link here and generated more add revenue for the ailing tomshardware site only to find out that the headline was total bs...

    what the hell...

    the best part...no where in the article besides the headline does it mention that the ps3 now costs 300 even make...even the link with the tear down estimates reiterate the 448 cost...

    after over 12 years i almost done with this site...

    -c
    Reply
  • Tindytim
    christian summerthe headline does it mention that the ps3 now costs 300 even make...
    It doesn't say that at all. It says it's $300 cheaper to make. But according to this it's actually $400 dollars cheaper (Starting at $840 and ending at $448).
    Reply
  • wasteoftime
    Don't worry Christian I agree with you 100%. The headline is definitely misleading, but it fits in with about 70% of what's written on the site.
    Reply
  • evilshuriken
    I think the headline describes the point of the article just fine. Some people have nothing better to do than bitch and whine.
    Reply
  • frozenlead
    On another front, they've been selling PS3's at a loss for all this time and will finally break even on cost/revenue just as soon as the console is ready to be replaced by the next gen machines.

    Great idea, sony.
    Reply
  • WheelsOfConfusion
    Playstation 3 lasting ten years? Why not? The PS2 lasted eight good ones, even a couple of years into the PS3's run.
    Reply
  • Tindytim
    WheelsOfConfusionPlaystation 3 lasting ten years? Why not? The PS2 lasted eight good ones, even a couple of years into the PS3's run.It's still being sold, and games are still being made for it. And the PS1 lasted for 11 years.

    Although it will be sad to see the PS3 to be the first Playstation not to sell over 100 million consoles.
    Reply
  • zodiacfml
    the technology in ps3 was away ahead of its time. it can be used again for a next generation console that will be better and cheaper.
    Reply
  • kamkal
    how is the article's title misleading?

    300$ CHEAPER to make

    illiterate sons of b!tches!! ENGLISH MUTHAPHUCAS!
    Reply
  • megamanx00
    Of course, they had to eliminate components such as hardware support for the old PS2 games in order to get the price down. I still think that blu ray was a big drag on the PS3 simply due to the licensing cost. Such is the stupidity of the blu ray consortium. Blu ray is nice, but it isn't much different to me than a good upscaled DVD on my 42" Panasonic plasma.
    Reply