PlayStation 3 Production Cost Cut in Half

Matthew Davis writes, "With Sony experiencing what can only be described as disappointing financial reports for quite some time surrounding the launch of the PlayStation 3, it's understandable that they would feel compelled to reduce the loss made by each console sold. Nikko Citigroup has reported that by shrinking the chip sizes, re-evaluating parts (ie removing the Emotion Engine) and various other design tweaks, Sony has been able to bring the production cost of each console down to $400US from what was pre-November pre-40Gb model, $800US."

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sonarus3992d ago

expect more cost cutting to lead to an eventual price drop

Feihc Retsam3992d ago

Even with such a decrease in chip production costs, there is still a Blu Ray player and cell processor in that thing... I guess it's possible, since they are buying everything in such high bulk quantities, but $400 still seems pretty low.
I guess that would put them at breaking even on the newer consoles, which hardly ever happens this early on for console manufacturers...
Now if they could just get some games... I think everyone is done with Uncharted now...

DJ3992d ago

And yeah, it is possible. An Xbox 360, for example, costs around $250~270 to manufacture. Ironically, the Cell CPU only costs about $70, while RSX costs $85. Blu-ray drives are also pretty cheap now, in the neighborhood of $80.

I think the cost their stating is strictly for the 40GB SKU; the 80GB is probably still at around $475 due to the PS2 hardware on its motherboard, as well as the memory card slots.

bootsielon3992d ago

You would say that. "Master Chief" backwards, how clever.

zane_78493992d ago

"Now if they could just get some games... I think everyone is done with Uncharted now..."

This is an ignorant, lemmings sounding statement. My only console is a PS3 and I have so many games to play through that I had to stop buying them til I finished the ones I have. I need to finish Folklore, barely cracked Assasins Creed, have only a few hours in Unreal Tournament III, need to spend tons more time in Rock Band, Warhawk and it's expansion need some attention. I have to finish all these before I even let myself look at The Orange Box, Call of Duty 4, or think about getting into Burnout Paradise, Devil May Cry 4, or Hot Shots Golf 5 in the near future. On the PSN I have Pain, High Velocity Bowling, Everyday Shooter, and four new tracks in Motorstorm that need playing. I'm finishing up some PS2 games I had fallen behind on my PS3, nd I'm finally playing Final Fantasy IX through my PS3 and psp remote play.

There are tons of games to play, tons of options that offer even more games- and I'm sick of hearing this lame statement. PS3 owners aren't saying it, it is only other consoles fanboys who are trying to cling onto old arguments.

w57cpd3992d ago

Sony fanboys act as if MS or Nintendo will not have a price drop to counter the PS3. If Nintendo lower the Wii by $50 or if MS lower the 360 by $100 across all of the SKUs, Sony will not win in 2008.
Sure people will buy the PS3, but a $179 xbox 360 with a game and IPTV will increase sells worldwide. Dont underestimate MS as a company (windows OS)they know what it takes to keep a lead. As linux

Ju3992d ago (Edited 3992d ago )

They can drop wherever they want (360 & Wii). The low segment is covered by the PS2. The PS3 will be $299 if it has to be. Simple. $99 low, $299 high, happy sharing that $199 segment, Wii60.

BTW: Next 65nm RSX will possibly enable a $299 tag, and it'll make a profit again as soon as the 45nm parts are available (not sure if they'll ever go to 35nm).

+ Show (3) more repliesLast reply 3992d ago
HarryEtTubMan3992d ago (Edited 3992d ago )

haha Sony knows what they're diong as an(very very good) Electronics company.

PS3 has barely begun fighting... and that really is so true. There is so much coming in 2008 and 2009.

DarkSniper3992d ago

Sony Computer Entertainment has placed themselves in a grand position to mark it's place as the only source for gamers to fufill all of their gaming needs.

Developing costs being reduced can only mean signs of a substantial gain through price cuts for PS3 manufacturing. PLAYSTATION® 3 will undeniably become the showcase for millions of households worldwide as it continues to obliterate the XBOX 360.


Feihc Retsam3992d ago (Edited 3992d ago )

If the PS3 was already obliterating the Xbox360, I don't think the world knows it...

Comments like this one just scream "I'm so f*cking scared of the Xbox360" It's pathetic..

Propaganda... It only works on the ignorant. And if that's who you want as your company, you can have 'em

Capt CHAOS3992d ago

Erm.. You need to get off your high horse and see the reality..

Dark Sniper3992d ago

Dark Sniper would like to take a moment and apologize to his fellow N4G members and gamers for his recent and ongoing trolling of the forums. Dark Sniper was simply trying to show others the light at the end of the tunnel, which was the PLAYSTATION® 3 Home Entertainment Console. Dark Sniper truly believed that it was the best current-gen console available.

However, after getting an XBOX 360 as a Christmas gift, Dark Sniper has changed his opinion of the previously-ridiculed console. The sheer number of wonderful AAA titles, combined with the best controls, and topped off by the award-winning XBOX LIVE service has swayed Sniper to the dark side.

After playing both the PLAYSTATION® 3 Home Entertainment Console and the XBOX 360 side by side, Dark Sniper would like to congratulate Microsoft Corporation and its affiliated game developers for bringing us such wonderful products, that not only compete, but exceed anything that Sony has developed so far.

In conclusion, Dark Sniper would like to reiterate that no matter what side you are on in the console war, this is truly a great time to be a gamer.


supnub53992d ago

360 droids were becoming ps3 fans, the dark sniper turned to the light side and to 360 well i guess i take some, i give some

Ju3992d ago

LMFAO. LOL. You guys and dark sniper, you are really hilarious. That's entertainment. :)

BTW: I didn't know, that you didn't know about your 360 present 11 hours ago...LOL

DarkSniper3992d ago

Please notate the names in between the Dark Snipers. The one you see this post you're is obviously authentic. The imposter has a space in between the Dark and Sniper. Please refer to any previous posts and do not let any imposter deter you from your leader of the Sony Snipers. Dark Sniper.


Dark Sniper3991d ago (Edited 3991d ago )

Please note the names in between the Dark Snipers. The one you see this post you're is obviously authentic. The impostor has no space in between the Dark and Sniper. Please refer to any previous posts and do not let any impostor deter you from your leader of the Sony Snipers. Dark Sniper.


+ Show (4) more repliesLast reply 3991d ago
WAR_MACHINE773992d ago

all I can say is damn. They really must have made a deal with the devil to get the production costs down that far this fast. I guess another price cut this year to match what ever MS does isn't beyond possibility.

scrillakiller3992d ago

good that nullifies the 360 pr deop effect as if they do it so can we

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