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