According to iSuppli, the device costs significantly less to build than when it was first released in 2006, and is nearing break-even
One of the great articles of faith in the consumer electronics industry might be stated thusly: "Time heals all costs."
Basically it means that over time the parts used to make a popular product will become less expensive, or that two parts might be combined into one, or that better parts will become available at the same cost and so improve the product.
And it's proving to be true for Sony (SNE) and its flagship gaming system, the two-year-old PlayStation 3. According to a teardown analysis of the latest generation of the product conducted by the research firm iSuppli, the device now costs significantly less to build than it did when it was first released in 2006.