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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

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Comments (67 posts)

JMO_INDY
Thursday, July 30, 2009 @ 10:25:38 PM
Reply

Ive been saying it for a while, if your not willing to shell out twice the price for a 10 times better console, u dont deserve Sony's machine, I understand the need to broaden your demographic, but lets face it, they didnt exactly aim for little kids with this system, hence the hefty price tag, i still dont think they should be pressured to lower costs, its a great system and everyone here knows that our PS3s were worth every penny. You gotta pay for a superior console and experience, like you said Ben, its a premium price for a preium device.

Agree with this comment 27 up, 2 down Disagree with this comment

Xra897
Thursday, July 30, 2009 @ 10:33:47 PM

applause man that was perfect

Agree with this comment 7 up, 0 down Disagree with this comment

godsman
Friday, July 31, 2009 @ 2:17:20 AM

I just like the "slim" because its more energy efficient.

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www
Friday, July 31, 2009 @ 3:58:31 PM

I'm surprised people don't complain about the price of the iPhone, that little gadget thingy costing like a launch PS3,wtf...

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ThePearlJamer
Thursday, July 30, 2009 @ 10:25:46 PM
Reply

I'm glad I got my original 60 gig...I just feel like nothing that it might've needed was cut or cheapened down to lower the price...

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JMO_INDY
Thursday, July 30, 2009 @ 10:27:56 PM

good for you and being skeptical, haha, we dont want cheap systems,( Microsoft)and (Wii)

Agree with this comment 11 up, 5 down Disagree with this comment

ThePearlJamer
Thursday, July 30, 2009 @ 10:30:44 PM

I'd rather have a flat tire on my birthday or christmas than a Sh*tbox or Wii

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Jawknee
Thursday, July 30, 2009 @ 10:53:09 PM

The Wii is sooo dope.

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JMO_INDY
Thursday, July 30, 2009 @ 11:09:48 PM

Maybe if your on dope. lol. though Id doubt you would be able to control the Wii Mote and you would probably have a couple broken TVs.

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Jawknee
Thursday, July 30, 2009 @ 11:24:52 PM

No broken TV's here. The Nintendo hatred on this site a bizzare. Nintendo has created some of the best franchises and some of the most memorable characters. I play my PS3 more but I love my Wii the same.

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JMO_INDY
Friday, July 31, 2009 @ 12:43:10 AM

We dont hate the Wii, well i do, we just dont respect it, its a cheap gimmick and Mario and Zelda need to go bye bye, theyve milked mario's teets long enough.

Last edited by JMO_INDY on 7/31/2009 12:43:57 AM

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piratedrunk
Friday, July 31, 2009 @ 12:48:39 AM

I agree jawknee I haven't once regretted my purchase with the Wii it's been plenty of fun. some of you might remember fun.. the thing we usually play games for?

That said they have been seriously neglecting their supporters lately with so little content being released.

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Dancemachine55
Friday, July 31, 2009 @ 12:59:42 AM

Same here. I recently got a Wii, lots of fun, and best thing is cos of the small amount of good games on it means I can afford to play it.

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.

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JMO_INDY
Friday, July 31, 2009 @ 1:05:09 AM

Ur happy ur system has little games? thats effed up dude.

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Xbox_Killer
Friday, July 31, 2009 @ 1:42:52 AM

Hey now, don't talk about my Zelda like that.

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Oxvial
Friday, July 31, 2009 @ 2:01:38 AM

Zelda a little game ??? you are smoking the wrong things.

Last edited by Oxvial on 7/31/2009 2:02:04 AM

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JMO_INDY
Friday, July 31, 2009 @ 3:03:43 AM

I was speaking in quantity. wow. Its just Zelda, not exactly GOTY material.

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JMO_INDY
Friday, July 31, 2009 @ 3:20:24 AM

I dont undestand why I am getting bashed for hating Nintendo on a Playstation website, that makes no sense, I cant like something if I dont respect it.

Last edited by JMO_INDY on 7/31/2009 3:20:57 AM

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Jawknee
Friday, July 31, 2009 @ 3:28:50 AM

Zelda needs to go bye bye? Crazy talk! Zelda is one of then only games that gets better and better with each installment. I would even go as to say Wind Waker and Twilight Princecess have been some of the best games I've played in te last few years. To hate on Zelda is like Blasphamy my friend. Beg forgiveness before it's too late! Lol j/k.

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JMO_INDY
Friday, July 31, 2009 @ 4:24:27 AM

ive never heard of any of those games

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Oxvial
Friday, July 31, 2009 @ 6:41:54 AM

Its okay if you don't like Zelda but has a gamer if you don't respect that franchise you deserve those thumb downs .

Last edited by Oxvial on 7/31/2009 6:42:23 AM

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JMO_INDY
Friday, July 31, 2009 @ 6:52:28 AM

Well u down thumbing me isnt gonna stop me from disrespecting ur little elf buddy Zelda. deal with it.

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Oxvial
Friday, July 31, 2009 @ 7:13:28 AM

Yeah some people can't just be saved..I'm going to deal with that.

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Jawknee
Friday, July 31, 2009 @ 9:49:35 AM

jmo, you need to go barrow or buy a Gamecube or a Wii and play Wind Waker and Twilight Princess before you judge. Stop being a close minded and just play good games.

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PS3addict
Friday, July 31, 2009 @ 10:19:41 AM

Yeah, I agree,

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.

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Alienange
Friday, July 31, 2009 @ 1:22:11 PM

I was going to agree with you on this jmo but you argue like a baby.

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.

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Luan
Thursday, July 30, 2009 @ 10:51:57 PM
Reply

The fact that my PS3 is a 40GB and has a smaller nm processor makes me think my PS3 runs slower...

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JMO_INDY
Thursday, July 30, 2009 @ 11:07:59 PM

Skepticism is bad, just kidding, I asked a couple of my tech friends at our Area 30 career development site and they said its possible to update the RAM in the PS3 if you could find the right size, just sayin. But dont be too skeptic, remember, ur 40 gig is still more powerful then the X-Box 360, and thats priceless. Also, remember your dealing with Sony, when have they ever given us a defective and outdated console, i'll tell ya, never.

Last edited by JMO_INDY on 7/30/2009 11:10:48 PM

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LegendaryWolfeh
Thursday, July 30, 2009 @ 11:37:43 PM

not at all, the smaller nm just means it's smaller in size, not ability :)

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WorldEndsWithMe
Thursday, July 30, 2009 @ 11:38:54 PM

The power of the processor is the same, and the firmware updates make sure all the memory is being used optimally so don't be worried my friend.

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Highlander
Friday, July 31, 2009 @ 12:40:12 PM

It's not slower, it's cooler.

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Bugzbunny109
Thursday, July 30, 2009 @ 11:11:29 PM
Reply

"Reduction Of PS3 Manufacturing Costs Going 'As Planned' ". I feel my ps3 slim coming very soon senses tingling XD.

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Mornelithe
Thursday, July 30, 2009 @ 11:14:19 PM
Reply

I don't personally believe it needs a cut, not for what it gives as a whole. However, I do realize more sales means more money for Sony developers. So, either way works, more PS3 owners can't hurt, no matter how you flip it.

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Kevadu
Thursday, July 30, 2009 @ 11:24:36 PM
Reply

Have all you we-don't-need-no-stinkin-pricedrop folks seen the news about the PS3 being outsold by the PS2 last quarter? This is not good. If you want anyone to actually make games for your favorite console then you'd better be hoping for a pricedrop...

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WorldEndsWithMe
Thursday, July 30, 2009 @ 11:40:29 PM

au contraire, if PS2 is still supplying money to Sony, they will have plenty to spread around for their 1st party exclusives. People often forget in this console war that MS supports one console, Sony supports 3 including PSP.

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Masterofallz
Thursday, July 30, 2009 @ 11:46:33 PM

The Ps2 is $100.

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?

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bigrailer19
Thursday, July 30, 2009 @ 11:56:24 PM

@KEVADU
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!

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Mornelithe
Thursday, July 30, 2009 @ 11:58:14 PM

The only people I really care about making games for the PS3, have no choice but to do so. 1st party developers are spitting out games left and right, I've no worries about the PS3's situation at all, anymore than I do the PC gaming market.

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Kevadu
Friday, July 31, 2009 @ 1:17:40 AM

I don't think you get it...

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.

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JMO_INDY
Friday, July 31, 2009 @ 3:06:51 AM

The PS2 has earned a hella lot more respect then that dude. Dont diss the PS2.

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Mornelithe
Friday, July 31, 2009 @ 12:23:19 PM

@ Kevadu - You're barking up the wrong tree. I'm one of the bigger proponents of utilizing PC gaming for multiplatform games, since the PC's hardware is much more up to date than the consoles. So, no, I don't care about non-1st or 2nd party studios, not on the PS3 anyway.

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Highlander
Friday, July 31, 2009 @ 12:50:44 PM

@Kevadu

"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?

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RadioHeader
Friday, July 31, 2009 @ 6:19:28 PM

Wow, the PS2 has been out selling the PS3?
Are you guys talking about NPD, or worldwide?

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Jawknee
Thursday, July 30, 2009 @ 11:32:42 PM
Reply

Glad to hear it. While I mostly agree that the PS3 doesn't need a price cut, if Sony can afford it and it can help Sony move units then I say go for it.

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bigrailer19
Thursday, July 30, 2009 @ 11:47:40 PM

the fact is it does need a price cut when your outside looking in, you can not ignore that. It is the most expensive of the consoles so to someone who does not have one it desperately needs a price cut.

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!

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tes37
Friday, July 31, 2009 @ 6:10:03 AM

The first thing that will happen when Sony drops the price is people will ask for another price cut. That's what happened when they made a price cut the first time around.

Last edited by tes37 on 7/31/2009 6:13:03 AM

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Jawknee
Friday, July 31, 2009 @ 10:44:03 AM

Maybe, but you have to at least admit that the 1st price cut was a must. When Sony 1st anounced the price before it's launch, I told myself I wouldn't buy one out of protest. $599 was too much. I waited until the 1st price drop and then got my 60gb. While now I understand the reason it's costs so much and actually am happy with the price, new comers don't understand. They see the price and are turned off. Sony should either cut that as much as they can with out taking a loss or ramp up their marketing campaign or both.

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WorldEndsWithMe
Thursday, July 30, 2009 @ 11:41:53 PM
Reply

Somewhere in a poorly lit office a devious Sony exec leans back. The moonlight bounces off his scarred bald head. He steeples his fingers and mutters "Yeeees, everything is going according to plan."

And that is a good thing my friends ;)

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JMO_INDY
Friday, July 31, 2009 @ 12:39:39 AM

haha, thats great. Why the hell am I still getting trolled? U can stick ur thumbs down... up your ass. that is all.

Last edited by JMO_INDY on 7/31/2009 12:44:21 AM

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LegendaryWolfeh
Friday, July 31, 2009 @ 2:58:19 AM

woah woah calm down indy, maybe wrong reply? besides just ignore any trolling and move on, don't feed em.

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JMO_INDY
Friday, July 31, 2009 @ 3:04:48 AM

No it wasnt wrong reply, i was just adding it there

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tanner1
Friday, July 31, 2009 @ 5:09:26 AM
Reply

@ kevado, ps3-24000000 sold x $400 xbox- 29000000 sold x $200. Do the math my friend and lets not forget the failure rates ie the 360 is the worst electrical device ever 2 b released to the public so of that amount sold how many r replacements?

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___________
Friday, July 31, 2009 @ 6:43:48 AM
Reply

its funny how people using the high price for quality machines but fail to mention that theres many many more stories of ps3 failures than wiis.
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

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JMO_INDY
Friday, July 31, 2009 @ 6:51:15 AM

i have an 06 model,and an 09 model, no problems here, no YLOD, I think ur thinking of Red Ring of Death on X-Box, lol, i also have 6 friends who have early PS3s and still no problems, so it must ne really freaking rare, and Wiis dont break, the TVs do, haha

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The Stig
Friday, July 31, 2009 @ 7:28:34 AM

I dont think you hear about the Wii breaking as much as the PS3 and 360 because it doesnt. But then again the Wii isnt as complex and CPU demanding as the PS3 and 360.

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

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ThePearlJamer
Friday, July 31, 2009 @ 10:21:03 AM

my cousins bought a Wii and I thought it was broken right out of the box, turns out it was just a peice if crap...

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PS3addict
Friday, July 31, 2009 @ 10:26:43 AM

Actually do a read up on "WiiConnect24"...
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

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Mornelithe
Friday, July 31, 2009 @ 3:14:44 PM

Wait a minute, you're telling me that somehow Sony...of all companies... Is immune to having their YLOD numbers truly represtented online in an un-biased manner? Is that what you're really trying to say? Because, it would occur to me that out of all 3 console manufacturers, Sony is the only one, incapable of keeping secrets. Ever.

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.

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tes37
Friday, July 31, 2009 @ 9:22:32 PM

People don't play a Wii enough to brake one.

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Hezzron
Friday, July 31, 2009 @ 7:53:37 AM
Reply

It's about time Sony gets that figured out!!!

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Snaaaake
Friday, July 31, 2009 @ 9:04:42 AM
Reply

YLOD?
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.

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___________
Friday, July 31, 2009 @ 10:03:58 AM
Reply

rare so why have 6 people at my tafe class got it?
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.

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Havoc
Friday, July 31, 2009 @ 10:10:25 AM
Reply

Its funny to see a console with close to 9 million more consoles out there selling multiplate titles so close to the ps3 lately. I firmly believe that there are millions of broken 360s that have not been replaced and are not in circulation that people are not buying games for. So in reality there are not that many more 360s out in the wild.

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Alienange
Friday, July 31, 2009 @ 1:08:58 PM
Reply

I think in this nasty economic climate Sony will keep the price right where it is so they can make a few bucks for a while. They'll drop the PS3 price in 2010 when things are looking up again.

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Highlander
Friday, July 31, 2009 @ 1:10:20 PM
Reply

Let's not make any mistake here, a price cut on the PS3 would be a good thing for the ales numbers. However would it be good for Sony or PS3?

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.

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godsman
Friday, July 31, 2009 @ 6:58:33 PM

I agree completely, you get a thumbs up.
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.

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Stratsman
Saturday, August 01, 2009 @ 11:46:17 PM
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For the few that think the PS3 doesn't need a price drop, you probably already own one. But what if,tomorrow, you found yourself needing to replace your PS3? Would you not care about the price? would you welcome a price drop then? If not your either not telling the truth or you're rich. A price drop is always a good thing for reasons already mentioned, and it WILL sell a lot more systems.

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