Report: PS3 "At Or Near Tipping Point For Profitability"
Sony wants to start turning a profit on the PlayStation 3 very soon, and according to manufacturer iSuppli, that time isn't far off.
At the start of the generation, it was revealed by iSuppli that it cost Sony approximately $840 to produce one 60GB PS3, which meant Sony was initially losing $240 per system (the first price tag was $600). However, Sony recently cut the cost of manufacturing by a whopping 70% and then debuted the recently released 120GB PS3 Slim with its lowest price point ($299) to date. Now, iSuppli has reevaluated the situation and while Sony is still losing money on each console sold, the number is much lower. It now costs Sony about $336 for every PS3 Slim made, which means they're only losing $36 per machine and iSuppli reminds us that costs will continue to fall in the coming year. iSuppli director and principal analyst Andrew Rassweiler said, "In light of these factors, the PlayStation 3 probably is already at or near the tipping point for profitability." Couple this with the surge of PS3 popularity due to a variety of reasons and perhaps you can say with confidence, "things are looking up." And maybe that's an understatement.
We'll have to see how the PS3 performs in 2010, but with exclusives like God of War III, Heavy Rain, Gran Turismo 5 and The Last Guardian leading the way, next year is shaping up quite nicely already.
12/15/2009 9:29:44 PM Ben Dutka