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Sony's Cost for PS3 Dramatically Reduced

kijibe
123 Comments

Posted December 23, 2008 - By kijibe

In the last two years, Sony's cost to produce the PS3 has dramatically decreased. The console which once cost $840 to manufacture now reportedly costs Sony $448.73 (it retails for $399).

While we've seen Microsoft cut back the price of its Xbox 360 three times, it's no wonder the PS3 didn't do so well over the holidays with its price remaining at $399. Whereas the Xbox 360 sold 836,000 units in the U.S. last month, the PS3 merely sold 378,000 units (the Wii sold an impressive two million).

So how will Sony remain competitive and possibly break-even, or even dare to turn a profit? It may have to slash its price point and reduce or combine chips in its console.

When Sony launched the PS3, it contained 4,048 parts. It now contains 2,820 --dramatically reduced by a third of what it had before. The price of its Cell processors and Nvidia graphic chipset have decreased, as well, adding to its cost savings.

Although retail price-cuts are a benefit to the consumer, at what cost to the manufacturer? To stay competitive, it's understandable Sony must do this. However, won't this hurt its cost savings..talk about one step forward, two steps back.

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Sony's Cost for PS3 Dramatically Reduced
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