PS3 now 70 per cent cheaper to make

[wraggster]

The manufacturing costs of PlayStation 3 have dropped by 70 per cent, according to Sony CEO Nobuyuki Oneda.

He was speaking during a conference call, as reported by TVG.

"The cost reduction since we introduced the PS3 is very substantial and this is on schedule," Oneda told investors.

"We don't disclose how much of the PlayStation 3, specifically the cost deduction, was achieved during the past two years. But that is on schedule."

When pressed further on how much the cost has come down Oneda replied, "About 70 per cent, roughly speaking."

Sony's never said exactly how much it costs to make a PS3. However, back when the console launched estimates put the price of manufacturing each machine at $800 / £485. In January last year, reports indicated the cost had fallen by 50 per cent to reach $400 / £243.

GamesIndustry.biz's own Carol Vorderman calculates that a further 70 per cent drop would put the current cost at $240 / £146 per unit.

Could that mean a price cut is on the way? Or perhaps they could start giving them away for free?

http://www.eurogamer.net/articles/ps3-now-70-per-cent-cheaper-to-make

[JLF65]

If you remember, the BluRay drive in the PS3 was the single largest expense in the BOM. Given that stand-alone BD players have cracked the $100 mark, and that stand-alone players cannot be sold at a loss, we can clearly see that the BD drive is no longer an expensive part. Between that and Sony eliminating the PS2 chips from the PS3, that's probably the bulk of the savings. All the rest of the PS3 is more "normal" electronics that have dropped in price the same as for everyone else.