Sony Drops PS3 Costs Dramatically, May Turn Profit In 2009

Earlier this year, Sony Computer Entertainment president Kaz Hirai issued a statement that clearly outlined his desire to have the PlayStation 3 turn a profit in early 2009. Now that Christmas is only a day away, perhaps we should say that Kaz's wish may be granted...

According to BusinessWeek, Sony has continually worked to reduce the cost of manufacturing the PS3 and that process is starting to pay off. The system cost a ridiculous $840 to produce in 2006 when it first launched (silly to complain about the $600 price tag, wasn't it?), but now, they've nearly halved that number to about $445. They managed this by cutting down the number of inner-working parts from 4,048 to 2,820, and although they were forced to get rid of backwards compatibility for PS2 software, Sony will consider this a fair trade-off. Even the Cell processor costs much less to produce than it used to; it cost $89 at launch and now sits at only $46. Obviously, this comes as good news to both gamers and Sony shareholders, and although Sony is still losing money on each console sold, it's down from a $240 loss to a $45 loss. That's a far less absurd number, and it may indicate the possibility of a price drop as early as spring or summer of next year. The rumors that Europe has already seen a price cut have yet to be officially confirmed or denied.

But at this rate, things should be looking up soon for everyone involved with the PlayStation 3. Prospective owners should heed this report as well, because price is a big issue and with dropping manufacturing costs...well, the connection is clear.

12/23/2008 John Shepard

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

Comments (40 posts)

Toggle Scrolling | Reload Comments

WaR_HaWk
Tuesday, December 23, 2008 @ 10:01:41 PM
Reply

im pretty sure sony makes money of PS3.

0 up, 2 down

ec0li
Tuesday, December 23, 2008 @ 10:54:22 PM

If Sony was making money off PS3 we would have seen a pricecut right b4 the holidays to offset the 360's sales surge because of their pricecut. In any case, it looks like it will be a better 2009 for Sony with both hardware and software.

Damnit, I'm jealous of you early adopters with backwards compatiblity.

Last edited by ec0li on 12/23/2008 10:56:58 PM

0 up, 0 down

Xanavi23
Tuesday, December 23, 2008 @ 10:03:12 PM
Reply

The awesome thing for Launch buyers like me is that we have the no budget cut versions. If only superficial, i still feel confidant in my hardware.

0 up, 0 down

Ponokyo
Tuesday, December 23, 2008 @ 10:09:41 PM
Reply

I agree 23. I have the 60gb version and I'm not giving it up unless I absolutely have to.

1 up, 0 down

Xanavi23
Tuesday, December 23, 2008 @ 10:36:38 PM

You never will, only swap the hard drive for a bigger one when you need. I have a Launch 20GB so now i have to swap them cause i'm maxed out with GT5P, MGS4 and Rainbow 2...so other than bigger drives, we'll be good for a looong time ;). We spent alot but we have our security :)

0 up, 0 down

FLYING_APE
Wednesday, December 24, 2008 @ 12:28:52 AM

Yeah same here but it get loud when watching blu rays.

0 up, 0 down

kreate
Wednesday, December 24, 2008 @ 4:53:53 PM

so if i change out the hdd, the ps3 still remembers all the videos,photos, pms and all that? how does that happen? its a new hdd ?

0 up, 0 down

kreate
Wednesday, December 24, 2008 @ 5:04:22 PM

thanks ffrulez didnt know it had such a feature.

0 up, 0 down

Jed
Tuesday, December 23, 2008 @ 10:36:37 PM
Reply

I feel the same about my 60gig. I hope it never breaks!

0 up, 0 down

Aftab
Wednesday, December 24, 2008 @ 6:09:14 AM

The 60-gigger is definitely the most feature-rich SKU. The b/c is amazing. It (along with the 20gigger, I'm sure) actually plays my old scratched up ps2 titles better than my ps2 could. If you have a later model, no big deal, and if you have one and payed extra for it, no worries, either.

0 up, 0 down

isaya85
Tuesday, December 23, 2008 @ 11:43:32 PM
Reply

Well I have my 40 gig I bought 4 months ago I sold my 360 to get it and havent regretted it I've always been a playstation fan its a good time to own PS3.

2 up, 0 down

Jed
Wednesday, December 24, 2008 @ 1:10:00 AM

Very true. Most people that buy a ps3 will spend AT LEAST $45 on games and accessories etc.

0 up, 0 down

MetalHead09
Wednesday, December 24, 2008 @ 12:27:06 AM
Reply

im really happy that i managed to get a ps3 in the first year of its life. i got the 40gig but at the time i didnt realize the differences between the two but oh well, i love my ps3. starting to look a little dinged up but thats only because ive taken it places with me. i really have to tip my hat to sony for caring more about the gamer than the money, if they didnt care about us they wouldnt have given us such an awsome deal and such a power house of a console. THANK YOU SONY WE LOVE YOU! hell yea. UP THE IRONS TO!

Last edited by MetalHead09 on 12/24/2008 12:27:30 AM

0 up, 0 down

Qubex
Wednesday, December 24, 2008 @ 6:57:04 AM

It cost the Father of the Playstation his job though!

Q!

"i aM hOMe"

1 up, 0 down

MetalHead09
Wednesday, December 24, 2008 @ 2:37:07 PM

yea but i think there was more behind his retirement than just that though.

0 up, 0 down

kreate
Wednesday, December 24, 2008 @ 4:55:14 PM

qubex lol

0 up, 0 down

FLYING_APE
Wednesday, December 24, 2008 @ 12:34:58 AM
Reply

Everyone who can afford a ps3 thinks it's awesome like me and the guy's on this site.

mgs4+lbp+valkyria chronicles+ blu ray on my new 42 inch tv = MOTHA F**KING HEAVEN

2 up, 0 down

WorldEndsWithMe
Wednesday, December 24, 2008 @ 1:04:07 AM
Reply

hopefully it'll take less than 2 years to cut in half again so these guys can get some moneys.

0 up, 0 down

jerocarson
Wednesday, December 24, 2008 @ 1:07:44 AM
Reply

they can recover the loss from the other profit making platform-ps2,psp,and ps store and if 'HOME' goes well, then all would be set for killer price cut.
cheers

0 up, 0 down

Jed
Wednesday, December 24, 2008 @ 1:13:48 AM
Reply

Home is doing very well right now. They are already banking on the stuff at the mall.

0 up, 0 down

karneli lll
Wednesday, December 24, 2008 @ 4:38:54 AM

home is what now? Doing well is seeing the glass as overflowing. Home is losing users and at a fast rate too. Sony has this problem of multitasking which takes longer.Home has potiential yes,but that potiential excuse is growing old. At least Sony got better ads now, it would'nt hurt tho, to show the ps octopus /spider/ flying controller ad

Last edited by karneli lll on 12/24/2008 4:40:28 AM

0 up, 0 down

kreate
Wednesday, December 24, 2008 @ 4:58:53 PM

home is not really 'losing' users. sometimes its hard to sign on and when i see my sister play home. it seems the complainers always come to home cuz they got nothig else to do, and than just complain more.

there isnt that much to do so with more updates ppl will keep playing from time to time.

when a new update hits, everyone comes back to home to see whats new.

0 up, 0 down

Qubex
Wednesday, December 24, 2008 @ 6:58:02 AM
Reply

Just a little note gents... if you do a search on Ebay... I always see 60gigga PS3's going for sale. Some of them are still new and boxed... you can get them, they are still around!

Q!

"i aM hOMe"

0 up, 0 down

Arvis
Wednesday, December 24, 2008 @ 9:02:27 AM

And they're like $1000. :D

-Arvis

0 up, 0 down

kreate
Wednesday, December 24, 2008 @ 4:59:36 PM

more like 1300 whose gonna buy that? i can get 3 ps3 with that cash.

0 up, 0 down

SarahPalinMILF
Wednesday, December 24, 2008 @ 9:01:36 AM
Reply

WHOA...Is this for the monsterous 160GB or the 80...

0 up, 0 down

SarahPalinMILF
Wednesday, December 24, 2008 @ 9:03:10 AM
Reply

Does Ben, Arnold or john think that they could do a instructional piece on how to swap out a hard drive for a larger one...that would be great please...

0 up, 0 down

kreate
Wednesday, December 24, 2008 @ 5:01:14 PM

just google or yahoo it. instructional videos also on youtube.

0 up, 0 down

Deleted User
Wednesday, December 24, 2008 @ 11:03:13 AM
Reply

They might drop the price in 09? A smart move on their part. You have to wonder tho if they can drop the cost to build before then.

0 up, 0 down

Frenchy17
Wednesday, December 24, 2008 @ 11:16:41 AM
Reply

SarahPalinMilf, there are tutorials all over youtube showing you how to do that. It is really easy, pretty much unscrew the cover, pull the old one out, put the new one in, and screw the cover back on. You can also go to playstations site under support and there is a manual that tells you how to do it. I have a launch 60gb that I swapped out for a 320gb harddrive I bought for $60 after rebate. I could not be happier!

0 up, 0 down

kreate
Wednesday, December 24, 2008 @ 5:01:54 PM

what do u guys have on the ps3 hdd that takes that many gigs?

0 up, 0 down

sabitrulz
Wednesday, December 24, 2008 @ 11:36:49 AM
Reply

I sold ma original 60gb n bought da 80gb cuz da 60gb gets a lot hotter......believe me it's true.....now i run da 80gb for bout 5-6 hours at a stretch.....but it never gets hot....juz love it

1 up, 0 down

kreate
Wednesday, December 24, 2008 @ 5:02:38 PM

my 60 gig ps3 hasnt been turned off for 5 days straight. what do u have to say about that?

0 up, 0 down

Deleted User
Wednesday, December 24, 2008 @ 8:59:02 PM

I left my 2 on all vacation. I was gone for a week half.

0 up, 0 down

superjew
Wednesday, December 24, 2008 @ 1:23:14 PM
Reply

Yeah it's too bad the 60 has heating issues, makes the temperature in my room go up pretty easily. Guess it'll be good during the winter. I still wouldn't trade it in though, BC is really important to me.

1 up, 0 down

ec0li
Wednesday, December 24, 2008 @ 2:52:04 PM
Reply

I forget to turn off my 80gig PS3 sometimes when I go to sleep...

0 up, 0 down

Scarecrow
Wednesday, December 24, 2008 @ 3:35:08 PM
Reply

Yes!
Really looking forward to a cheaper ps3.

I want to buy a second one for miscellaneous purposes.

0 up, 0 down

phade2blaq
Wednesday, December 24, 2008 @ 6:01:27 PM
Reply

When and if Sony cuts the price of the PS3, they will enable people who didn't buy the chance to afford one and that should boost sales overall.

If Sony is smart, they'll reduce the price in early 2009 since tax return season is right around the corner.

Last edited by phade2blaq on 12/24/2008 6:02:23 PM

0 up, 0 down

SHADOW [Moderator]
Friday, December 26, 2008 @ 2:56:38 AM

Unfortunately it's not that simple. Sony Corporate gave SCE a mandate to cut losses in any way necessary. They might not be given permission to cut the price until the PS3 is well cheaper to manufacture then it's current sale price.

0 up, 0 down

SlvrRubi
Sunday, December 28, 2008 @ 2:18:35 AM
Reply

To all of those upgrading their HDD, it's incredibly easy to do, but I've found that some systems (including my 60GB) are very picky about the restore process. I tried it 4 times, with 4 different backups on my new 320GB drive and it failed every time at about 75% restored (file corrupt error). So I just gave up and started over from scratch. Good thing I didn't have a lot on there that I'll miss.

0 up, 0 down

Please login or register to leave a comment.

Grand Theft Auto: Liberty City Stories cheats	PSP
Grand Theft Auto: San Andreas cheats	PS2
Catwoman cheats	PS2
Destruction Derby Arenas cheats	PS2
TMNT: Teenage Mutant Ninja Turtles cheats	PS2
The Incredibles cheats	PS2
Split/Second cheats	PS3
Winback cheats	PS2
Star Ocean 3: Till the End of Time cheats	PS2
Call of Duty: Black Ops cheats	PS3

Do you plan to buy a PlayStation Vita this year?
	Yes, I'll definitely get one in 2013.
	No, but I'll get one eventually.
	No, I have no intention of buying the Vita.
	No, I've already got one.

Playstation 3

Playstation 4

PSP

Playstation Vita

Playstation 2

Playstation

Other

PSX Extreme

Site Stats

Sony Drops PS3 Costs Dramatically, May Turn Profit In 2009

Comments (40 posts)

Leave a Comment

Latest Updates

Popular Cheats

Recent Reviews

Recent Previews

Popular Sections

Extras

Sponsor

Our Poll

Resident Evil: Revelations review	PS3
Metro: Last Light review	PS3
Zombie Tycoon II: Brainhov's Revenge review	PS3
Far Cry 3: Blood Dragon review	PS3
Star Trek: The Video Game review	PS3
Injustice: Gods Among Us review	PS3
Dead Island: Riptide review	PS3
Defiance review	PS3
Sniper: Ghost Warrior 2 review	PS3
Army of Two: The Devil's Cartel review	PS3

The Bureau: XCOM Declassified preview	PS3
Time and Eternity preview	PS3
Ride to Hell: Retribution preview	PS3
Call of Juarez: Gunslinger preview	PS3
Far Cry 3: Blood Dragon preview	PS3
Spartacus Legends preview	PS3
Payday 2 preview	PS3
DUST 514 preview	PS3
Dynasty Warriors 8 preview	PS3
Disgaea D2: A Brighter Darkness preview	PS3