PS3 hardware and manufacturing cost estimated at $840

El Segundo (CA) - Market research firm iSuppli has taken apart two of the first available PS3s and found that - not surprisingly - Sony may spend far more on manufacturing the game consoles than the retail price may suggest. The company is estimated to spend about $840 to build and manufacture the 60 GB model.

Despite the fact that the Playstation 3 is priced significantly higher than any other game console before, the company continues the tradition to introduce the device below manufacturing cost and hope to get into the black through decreasing hardware costs over time and game sales...

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CompGeek4451d ago

If Sony hadn't shot themselves in the foot with blue ray...

Phytonadione4451d ago

damn Sony and their decision to include CD...I mean DVD...I mean Bluray. What the hell are they thinking. What happened to the good ole cartridge?

CompGeek4451d ago (Edited 4451d ago )

CDs were cheaper than catridges

DVD had already become the standard, had no competition, and was not significantly more expensive than CD-ROM technology as it was not new.

Blue Ray is 20x more expensive than DVD tech and is not even a proven format yet. Big difference.

Phytonadione4451d ago

DVD had already become the standard? Are you sure about that? If I recall correctly, DVD's had sold only marginally better than LaserDisk's launch prior to PS2's debut. And once PS2 was on the market, the sale of DVD movies tripled in one year. This at a time when DVD players were still in the $400-$600 range. When DVD players first entered the market, you'd be lucky to find one under $1000. This scenerio sound familiar?

CompGeek4451d ago

LaserDisk was never even remote competition, I had never even heard of it. Back in 2000 my family went out and bought a DVD setup, no one ever bought laser disk, it wasn't competition of any sort.

Ugly American4451d ago

I bought my first DVD player in 1997 for $400.00. I was a senior in college. I bought my NEXT DVD player before the PS2 came out for $20.00. DVDs were on the cusp of breaking through when PS2 came around. I am not denying it helped, but it sure as hell didn't MAKE DVD.

To keep this in perspective, I was in Japan from 2001 to 2004, and when I got to the Navy Exchange, there was about 20 VHS tapes, and three walls of DVD. My friends, who did not own a PS2 and didn't care about the PS2, were buying them like crazy. DVD was cooler and easier than the larger than a standard vinyl record Laser Disc.

Phytonadione4451d ago

came out years earlier than DVD and had no competition. The disks were the size of vinyl records but were of the same quality of DVDs. It generally had very little movie support and was a tad expensive for its time. And as they say, size does matter, which in this case meant too big is no good.

Ugly American4451d ago

That was $200 DVD player in 2000.

And LASER DISKs had Star Wars... woot. That was about it... oh and "2001"

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gamer20084451d ago

heck i dont really care much for this stuff my self. the only reason i mostly post on ps3 stuff is because its just something new. well i know tons of people that bought ps2 to watch dvd. and heck theres not any good games comming until next year so ill just use ps3 to watch blu ray and play ps2 and ps1 games on it.

calderra4451d ago

Not everyone who bought the 360 was a gamer, either (even that console regularly saw $2,000+ on eBay), but the 360's software attach rate was still over 2x PS3's.

And when Wii launches, not only will it have a massive attach rate (Zelda, Metroid, Excist Truck, etc), but they'll also probably have at least 5x as many units in stores as PS3. And 360 will have around that many units as well, whilst boasting titles like Gears of War, Viva Pinata, (etc).

And that's not even the most damning factor- the thing that REALLY irks everyone is just the constant BS. Sony's still trying to say Cell is "3x" more powerful than 360's CPU, despite overwhelming evidence that the two consoles perform incredibly similarly (see: Sony internal advertising debacle a few days ago). Sony's still trying to say Killzone '05 was real gameplay- and they're even trying to say it looks better now, despite not a single screenshot or even any more pre-rendered videos to back it up! (see: Harrison, a few days ago)

Absolute, stupid, blind hubris.

Phytonadione4451d ago

We won't know the attach rate until the PS3 releases in the U.S. and the Japanese units hit ebay and get sold. Basically, until the units get into the hands of gamers. The only reason to buy a 360 is to either play games or sell on ebay for a profit to someone who wants to play games. The PS3 has the whole "watch a Bluray movie" factor, for better or for worse.

calderra4451d ago

"The PS3 has the whole "watch a Bluray movie" factor, for better or for worse."

Gotta say:
360 had its established online network, including hits like Geometry Wars that instantly turned heads in the industry as it established a 50+% demo-to-purchase conversion rate. And it was the first console to offer people a chance to try out media streaming from Media Center PCs (even if it didn't work out, people wanted to try it). On that note, it was also first-to-market, meaning lots of purchasing by people who wanted to be on the bleeding edge of next-gen.

It's not like the 360 didn't have established novelty factor.

Phytonadione4451d ago

but the first Xbox had an established online network and there is no need to buy a $300 console just to stream media from a Media Center PC. Those are just added bonuses. Whereas, in order to watch a Bluray movie, you need a Bluray player. PS3=$499. Cheapest stand-alone player=$1000. That is a big difference.

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Anerythristic264451d ago

I have this feeling that if the PS3 is in any way a bust and with thier financial situation , could this be the last PlayStation ? Trilogy maybe?

Ugly American4451d ago

Let's hope it is not a bust. It sucked when the Dreamcast went bye and bye, and that didn't cost $600.00. I don't want another game console where there are no games being produced anymore.

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