Reduction Of PS3 Manufacturing Costs Going "As Planned"
See Full ImageAlthough everyone, ranging from analysts to journalists to gamers, continue to call for another price drop for the PlayStation 3, Sony says the cost reductions in terms of hardware manufacturing are proceeding "according to plan."
After launching at a premium price of $599, Sony shaved that exorbitant price by 1/3 in a span of only two years, but to remain competitive, some are saying they need to keep going. On the manufacturing side, Sony has managed to lower costs, which is - of course - of a primary concern. As Sony said in their Annual Report, and as found by Examiner.com:
"Regarding the reduction of hardware costs, efforts to shrink the Cell/B.E. progressed according to plan as the original 90nm generation gave way to 65nm and then 45nm devices. Through this, as well as through ongoing efforts to reduce the number of components used, Sony will endeavor to further improve profitability."
Obviously, "profitability" is what matters in business, and the big question is: has Sony arrived at a position where another hardware price cut would still yield the same level of profitability? As of now, many think that the upcoming 45nm chipset will debut with the oft-rumored PS3 Slim and if manufacturing costs are low enough, perhaps that new model will also come with a more attractive price tag. This argument could rage quite literally forever but we have a simple bottom line for you: as an avid gamer, would you want to miss out on the current and future PS3 exclusives?
7/30/2009 Ben Dutka
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Comments
godsman
Friday, July 31, 2009 @ 2:17:20 AM
3 up, 0 down
www
Friday, July 31, 2009 @ 3:58:31 PM
5 up, 0 down
ThePearlJamer
Thursday, July 30, 2009 @ 10:25:46 PM
Reply
8 up, 1 down
JMO_INDY
Thursday, July 30, 2009 @ 10:27:56 PM
11 up, 5 down
ThePearlJamer
Thursday, July 30, 2009 @ 10:30:44 PM
14 up, 5 down
JMO_INDY
Thursday, July 30, 2009 @ 11:09:48 PM
10 up, 5 down
Jawknee
Thursday, July 30, 2009 @ 11:24:52 PM
7 up, 12 down
JMO_INDY
Friday, July 31, 2009 @ 12:43:10 AM
Last edited by JMO_INDY on 7/31/2009 12:43:57 AM
14 up, 5 down
piratedrunk
Friday, July 31, 2009 @ 12:48:39 AM
That said they have been seriously neglecting their supporters lately with so little content being released.
4 up, 7 down
Dancemachine55
Friday, July 31, 2009 @ 12:59:42 AM
And it is fun. Mario Galaxy, Wii Sports and Zelda brought back memories and feelings of having fun with a console, rather than it being a chore to finish and see how the story ends.
3 up, 6 down
JMO_INDY
Friday, July 31, 2009 @ 1:05:09 AM
7 up, 5 down
Xbox_Killer
Friday, July 31, 2009 @ 1:42:52 AM
7 up, 2 down
Oxvial
Friday, July 31, 2009 @ 2:01:38 AM
Last edited by Oxvial on 7/31/2009 2:02:04 AM
6 up, 3 down
JMO_INDY
Friday, July 31, 2009 @ 3:03:43 AM
7 up, 2 down
JMO_INDY
Friday, July 31, 2009 @ 3:20:24 AM
Last edited by JMO_INDY on 7/31/2009 3:20:57 AM
9 up, 3 down
Jawknee
Friday, July 31, 2009 @ 3:28:50 AM
6 up, 4 down
Oxvial
Friday, July 31, 2009 @ 6:41:54 AM
Last edited by Oxvial on 7/31/2009 6:42:23 AM
4 up, 6 down
JMO_INDY
Friday, July 31, 2009 @ 6:52:28 AM
8 up, 5 down
Oxvial
Friday, July 31, 2009 @ 7:13:28 AM
4 up, 4 down
Jawknee
Friday, July 31, 2009 @ 9:49:35 AM
4 up, 3 down
PS3addict
Friday, July 31, 2009 @ 10:19:41 AM
I love my Wii too!
Punch out is so freaking fun! I played this as a kid and it is great to have a new version. I love Twilight princess as well.
@ JMO,
Remember, a lot of us are over twice your age here and started out with the 8 bit systems. Disrespecting Zelda just should not happen, that game was one of the best games of the first/secnd generation of gaming, and Yes, it only has gotten better. I am stuck in TP at crossing the plains with the wagon, Damb Gail Boomerang is having issues locking on. or maybe it is me...
I put it down for a few days and am back to playing Chrono Trigger for a while.
6 up, 1 down
Alienange
Friday, July 31, 2009 @ 1:22:11 PM
I'm not a Wii fan that's for sure. I feel let down by Nintendo more than anything... low res, no games, no trophies ... in my books they've failed their long time fans.
4 up, 2 down
Luan
Thursday, July 30, 2009 @ 10:51:57 PM
Reply
2 up, 5 down
JMO_INDY
Thursday, July 30, 2009 @ 11:07:59 PM
Last edited by JMO_INDY on 7/30/2009 11:10:48 PM
7 up, 5 down
LegendaryWolfeh
Thursday, July 30, 2009 @ 11:37:43 PM
8 up, 0 down
WorldEndsWithMe
Thursday, July 30, 2009 @ 11:38:54 PM
8 up, 0 down
Bugzbunny109
Thursday, July 30, 2009 @ 11:11:29 PM
Reply
6 up, 2 down
Mornelithe
Thursday, July 30, 2009 @ 11:14:19 PM
Reply
8 up, 0 down
Kevadu
Thursday, July 30, 2009 @ 11:24:36 PM
Reply
2 up, 9 down
WorldEndsWithMe
Thursday, July 30, 2009 @ 11:40:29 PM
8 up, 0 down
Masterofallz
Thursday, July 30, 2009 @ 11:46:33 PM
The PS3 is $400-500.
Lets say you were a Mom and you didnt know anything about gaming. Which one are you most likely to buy?
9 up, 2 down
bigrailer19
Thursday, July 30, 2009 @ 11:56:24 PM
at this point devs will not stop supporting the PS3, even more so since Sony holds the most first and 2nd party devs. which have produced most of the best games for the system to this date. as World said Sony is supporting 3 consoles, which are all selling well, while microsoft is selling one that is slowly declining, so look at the big picture.
This is the point i always make, if you have a PS3 you dont technically need a price cut, and this far into the generation still selling as the most expensive console and selling well i might add, shows no sign of it drastically needing a price cut. I wont argue that it could use a price drop, it would be nice to have one for the people on the outside, but its obvious most people know what the PS3 is worth!
7 up, 0 down
Mornelithe
Thursday, July 30, 2009 @ 11:58:14 PM
3 up, 0 down
Kevadu
Friday, July 31, 2009 @ 1:17:40 AM
First of all, writing off all non-first-party games is absurd. I do hope you're not really serious about that. You guys all bitch and moan when you hear about companies like Square-Enix supporting the 360 and then you make inane statements like that...why the heck do you think S-E is supporting the 360? It's a bigger market, that's why. Game development costs are soaring and it's hard to even make a profit on sales for the PS3 alone.
But even first party games will be in trouble in the long term if Sony can't sell more consoles. PS3 software sales aren't particularly hot either, you know. Sony is not cranking out games as some kind of charity, they are a business and they want to make money. And they're not. They're not even close. They've just been posting loss after loss. Do you think this situation can continue indefinitely? If they're going to turn a profit based on their software then first they need more people out there with their consoles so there's somebody to buy it...
And yes, the PS2's longevity is impressive and it, at least, is profitable for Sony which helps them in the short term. But I should point out that the PS3 isn't just being outsold by the PS2...it kind of goes without saying at this point that it's being outsold by the 360 and Wii as well. And the DS and even the PSP (which isn't selling particularly well either...). Yes, the PS3 is being outsold by FRIGGIN EVERYTHING.
PS2 sales only help by giving Sony a little extra cash in the short term, but it's a dead platform and everyone knows it. If Sony wants to be at all relevant in the console market 2 years from now then they can't rely on PS2 sales...
BTW, bigrailer19, it is true that 360 sales are 'slowly declining'...everything is declining. There's a recession. What you're totally ignoring is the fact that PS3 sales are massively declining. They are down by much more than 360 sales...sheesh.
1 up, 11 down
JMO_INDY
Friday, July 31, 2009 @ 3:06:51 AM
7 up, 0 down
Mornelithe
Friday, July 31, 2009 @ 12:23:19 PM
2 up, 0 down
TheHighlander
Friday, July 31, 2009 @ 12:50:44 PM
"it is true that 360 sales are 'slowly declining'...everything is declining. There's a recession. What you're totally ignoring is the fact that PS3 sales are massively declining. They are down by much more than 360 sales...sheesh."
I wonder how many Xbox 360 Elite systems MS are selling these days? I mean, it's all very well for the world + dog to compare the sales decline of the PS3 against the sales of the Xbxo360 (all models), but in truth, is it a fair comparison? You're comparing a system that sells without a hard disc and only a DVD drive with a system that comes with a hard disc and a BluRay drive. That's not a valid comparison. I understand that it's the comparison many in the media make. But it's really not a very valid comparison, is it?
5 up, 0 down
RadioHeader
Friday, July 31, 2009 @ 6:19:28 PM
Are you guys talking about NPD, or worldwide?
2 up, 0 down
Jawknee
Thursday, July 30, 2009 @ 11:32:42 PM
Reply
4 up, 2 down
bigrailer19
Thursday, July 30, 2009 @ 11:47:40 PM
But on the inside looking out, its worth every penny dropped on the console. even though it is the most expensive, you get a true all in one entertainment console and have all the perks right out of the box.
so to us who have one of course we will justify ourselves by saying it doesnt need one, but the big picture is the PS3 doesnt need justifying, the console speaks for itself.
At this point though everyone who has a PS3 knows its worth it, those who dont are the ones either waiting for a price cut or dont know the value of it. i wont complain about a price cut cus i have one but if Sony can lower the manufacturing costs and drop the price, THATS GOOD NEWS!
3 up, 3 down
tes37
Friday, July 31, 2009 @ 6:10:03 AM
Last edited by tes37 on 7/31/2009 6:13:03 AM
3 up, 0 down
Jawknee
Friday, July 31, 2009 @ 10:44:03 AM
2 up, 0 down
WorldEndsWithMe
Thursday, July 30, 2009 @ 11:41:53 PM
Reply
And that is a good thing my friends ;)
8 up, 0 down
JMO_INDY
Friday, July 31, 2009 @ 12:39:39 AM
Last edited by JMO_INDY on 7/31/2009 12:44:21 AM
7 up, 8 down
LegendaryWolfeh
Friday, July 31, 2009 @ 2:58:19 AM
2 up, 1 down
JMO_INDY
Friday, July 31, 2009 @ 3:04:48 AM
4 up, 5 down
tanner1
Friday, July 31, 2009 @ 5:09:26 AM
Reply
5 up, 0 down
___________
Friday, July 31, 2009 @ 6:43:48 AM
Reply
ive never herd of a wii breaking, not saying they dont (because thats impossible everything breaks) but due to the lack of content over the net showing that you would assume its in a much lower rate.
ive got 2 friends who got a YLOD from a firmeware update and havent looked back since, went onto pc and i cant blame them.
i dont think its fair that a company forces a update on you, you comply your system bites the dust because of that update and you have to shell it out.
its their stuff up so why are you shelling out.
i wonder when sonys going to come out and admit its there fault because of the YLOD, ive got a few family friends who are hardware technicians and there saying the YLOD is due to a over heating CPU.
the CPU overheats because sony uses cheap heat sink paste, so its not distributing the heat properly.
something to back that up is at least 80% of YLOD machines are the older models, because overtime the paste deteriorates getting thinner and thinner till its unable to distribute the heat properly hence the YLOD.
i wish companys would go back to the customer service days, instead of sweeping the problem under the carpet, come up admit it and fix the problem.
if something breaks you fix it, you dont put masking tape over it to cover up the breakage
0 up, 6 down
JMO_INDY
Friday, July 31, 2009 @ 6:51:15 AM
5 up, 2 down
The Stig
Friday, July 31, 2009 @ 7:28:34 AM
The extent of the problem regarding the YLOD is still unknown, there are no official figures but it certainly isnt as big a problem as the RROD.
Last edited by The Stig on 7/31/2009 7:29:03 AM
4 up, 0 down
ThePearlJamer
Friday, July 31, 2009 @ 10:21:03 AM
3 up, 1 down
PS3addict
Friday, July 31, 2009 @ 10:26:43 AM
This function is turned on by default when you enable wireless on your wii, and can get the network card so hot that it damages the graphics card in the Wii!!
I mod wii's all of the time (Have 3 to do this weekend), and repair them as well. I know there are a lot of issues. Look up "Wii Brick" if you doubt it.
Last edited by PS3addict on 7/31/2009 10:27:12 AM
4 up, 1 down
Mornelithe
Friday, July 31, 2009 @ 3:14:44 PM
There are examples too numerous to list, that substantiate the severe mole issue that Sony has internally. Any kind of discussion regarding 'rampant ylod', circulating w/in Sony would undoubtedly be leaked, photo-copied, and posted online within seconds.
4 up, 0 down
Hezzron
Friday, July 31, 2009 @ 7:53:37 AM
Reply
1 up, 0 down
Snaaaake
Friday, July 31, 2009 @ 9:04:42 AM
Reply
That thing is so damn rare that 360 fanboys never use it as a weapon in fanboy wars.
Now back to the topic, good to see it's going "as planned", hope it's coming as soon as possible.
Once the price cut comes then there's no stopping the PS3, you have every reason to buy a PS3 and this 2 reason is enough:
1) Amazing exclusive(DUH!)
2) Blu-Ray(duh!)
Although there's only 1 reason not to buy a PS3, that particular 1 reason is very powerful I must say.
2 up, 0 down
___________
Friday, July 31, 2009 @ 10:03:58 AM
Reply
of a class of 20 6 have suffered from it i wouldent call it rare.
theres hundreds of posts scattered around the net of people with the YLOD, and multiple videos on how to fix it.
1 up, 0 down
Havoc
Friday, July 31, 2009 @ 10:10:25 AM
Reply
4 up, 0 down
Alienange
Friday, July 31, 2009 @ 1:08:58 PM
Reply
3 up, 1 down
TheHighlander
Friday, July 31, 2009 @ 1:10:20 PM
Reply
Two things are at work. 1) global recession, 2) the bait and switch operation called Xbox360.
1) The timing of the global recession has put a kink in things for Sony. It's as if the second year of the PS3's life has been stretch by 12 months. People are not buying because they are too busy spending their limited resources on food, electricity, clothes and homes. Declining console sales for the 360, PS3 and Wii are evidence enough of this. The 360's numbers are not as soft as those of the PS3, but then again the $199 Arcade system is cheap as chips, and rather like the PS2 at $99, it's a choice that's in reach of far more consumers right now.
The economy will heal, people will spend again, Sony will cut their price as their costs shrink, and consoles will continue to sell. By sticking to their guns on Price, Sony is understanding the problem. Coming to market (perhaps) with a new PS3 model (slim?) and new price point ($299) would appeal to the mainstream tier of consumers below the early adopters. One might also consider it something of a re-launch.
2) The Xbox360 bait and switch. It's like this. Advertise a stripped down model at $199 and grab the headlines and mindshare. Sell tons of the things. A few months later people realize they really needed an HDD in their system and so they spend a small fortune on an MS proprietary HDD. In the meantime count the sales of these cut down, bare bones systems, along with the sales of the other 360 models that sell for $299 and $399. Now take that cumulative number and compare it against the PS3, which as we all know only comes in models with an HDD and starts at $399. If you're Microsoft, you've made it look like PS3 is doing really poorly, and you've managed to gouge consumers for a cheap HDD to boot.
I wonder how many 360 Arcade owners are happy to pay the inflated price for the HDD so they can have a working system that can download content from XBL? I wonder how many of them regret getting the Arcade system and which they'd gone Pro or Elite, or even PS3 since thy still have another $200 to fork out for their BluRay player.
With a new model and probable price cut, along with a killer range of games that span at least the next 12 months. Sony has an opportunity to re-launch the PS3 in a meaningful way without devaluing what the PS3 already has accomplished.
9 up, 1 down
godsman
Friday, July 31, 2009 @ 6:58:33 PM
But i think the majority of the people that bought an Arcade for $199 are those that used to own one with a hard drive, then died from RROD but broke the warranty for hacking it. They just buy another and use the old hard drive.
2 up, 0 down
Stratsman
Saturday, August 01, 2009 @ 11:46:17 PM
Reply
1 up, 2 down
JMO_INDY
Reply
Thursday, July 30, 2009 @ 10:25:38 PM