Sony cuts PlayStation 3 production cost in half

[wraggster]

In a piece primarily focused on Blu-ray over at Business Week, a bit of scrolling led to quite the interesting tidbit: Sony has apparently been able to slash the production cost of its PlayStation 3 in half. More specifically, it was noted that the firm has been able to "shrink the PS3's chips and tweak its design," which aided in getting the cost per machine "to around $400 now, from above $800 just before it went on sale in November 2006." According to Nikko Citigroup's Kota Ezawa, the biggest culprit for such an improvement is the "reduction in the parts count." Still, we wouldn't get our hopes up for yet another price cut just yet, but at least things are moving in the right direction.

http://www.engadget.com/2008/01/12/sony-cuts-playstation-3-production-cost-in-half/

[Eviltaco64]

This one fanboy was saying it costs them $200 to manufacture a PS3 :p

[Triv1um]

So hopefully we see another price drop :)

sometimes i wish i brought mine later. Damn £425 for console (UK release date)

[Eviltaco64]

So hopefully we see another price drop :)

sometimes i wish i brought mine later. Damn £425 for console (UK release date)

How much would 425 pounds be in US dollars?

[Sonicboy 101]

Around $832

[Triv1um]

Around $832

Jesus, when you put it into dollars it seems like stupid money.

[ICE]

I would buy it for $300 but no more. Thats right ice is cheap.

[Eviltaco64]

I would buy it for $300 but no more. Thats right ice is cheap.

I'm cheap too! I got my Xbox and all the modding equipment (softmod equipment, even cheaper) for $40

[JKKDARK]

Probably they will remove something important from the backward compatibility.

[Gizmo356]

Probably they will remove something important from the backward compatibility.

they already did

[Shrygue]

So, the production costs to make a Playstation 3 is now $400 a unit which equates to £204, hmm now that's great news, cheaper retail prices maybe.

[Accordion]

But what is the wholesale price?

Why do people assume the RRP is all going to evil sony? I would like to know how much the retailers pay per unit.