Reduction Of PS3 Manufacturing Costs Going "As Planned"
Although 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