Saturday, January 12th 2008
PS3 Production Costs Halved
BusinessWeek is reporting that Sony has managed to halve the production costs of the PS3 since November 2006, suggesting that the company could now be making a profit on each 80GB console it sells. In an article analysing Blu-ray, the website comments that the cost per machine is now around $400, compared to $800 when the console was launched. This would mean that Sony could be making a profit on the 80GB model, which retails for $499, and would be making much smaller losses on the $399 price tag of the 40GB model. Despite the lower production costs, which are being largely attributed to a reduction in the parts count, Sony's games division is still expected to see overall losses of $1.4 billion this fiscal year, although that's down from $2.1 billion last year.
Source:
BusinessWeek
12 Comments on PS3 Production Costs Halved
But the lowered price would sell better, and be justified at the same time! C'mon, you know the average consumer doesn't give a damn what's inside of it. They just see PS3, with a cheaper price-tag. Only the few that notice the difference would be looking for the beefier hardware. If they do cut back on quality it'll be the game designers that suffer the most. Nothing like having to cut out shine and sparkle cuz the box can't handle it anymore.
M$ took a gamble on speed to market and quality/perf. I think in the end, they will ultimately lose this one. Sony has fucked up enough, but they're still a freight train chugging along and really can't be stopped.