PS3 News: PlayStation 3 Production Costs Halved - PS3 News

Members Login: Register | Why sign up? | Forgot Password?

PlayStation 3 Production Costs Halved

The PlayStation 3 may be an expensive system - although far less expensive now than it was at launch - but then again, it's an expensive system to manufacture. Even with the lower price point, Sony still takes close to a $200 hit on every PS3 sold, which obviously won't help to turn a profit. However, with some excellent software out already and the biggest titles scheduled for the near future, plus the apparently imminent Blu-Ray victory, sales are climbing. Sony pushed 1.2 million PS3 units during the nine-week holiday season, and that's just the beginning.

In even better news, Australian gaming site MyGen.com reports that Nikko Citigroup has been able to reduce the production cost of the 40GB PS3 from around $800 to about $400. They achieved this reduction by "shrinking the chip sizes," reevaluating parts (like removing the Emotion Engine that allows for backwards compatibility with PS2 titles), and undertaking some small design changes. Recently, Sony boss Kaz Hirai stated that the PS3 might turn a profit in 2008, so this manufacturing cost drop is right in line with expectations.

We imagine it'd be a whole lot easier to make money with a product when it suddenly costs half as much to manufacture and produce. Furthermore, you've made the consumers happy (or happier, anyway) with the recent price cuts, so everything seems to be going along swimmingly.

1/11/2008 Ben Dutka

Put this on your webpage or blog:
Email this to a friend
Follow PSX Extreme on Twitter

Share on Twitter Share on Facebook Share on Google Share on MySpace Share on Delicious Share on Digg Share on Google Buzz Share via E-Mail Share via Tumblr Share via Posterous

Comments (0 posts)

There are no comments to display.

Leave a Comment

Please login or register to leave a comment.

Our Poll

What do you think of the Destiny beta?
It's awesome! Can't wait for September!
It's only good, but I'm having fun.
Eh, it's okay, but I expected more.
It sucks, period.

Previous Poll Results