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PlayStation 3 Manufacturing Costs Down 70%

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.