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PS3 Manufacturing Costs are Going Down

December 23, 2008 Written by Azariah Ellington II

Written by Chris Rah Osiris chrisrahosiris-48
business-101

Sony’s goal is to make the PS3 profitable. The first step to profitablity is to break even. With the latest information that has been given out by iSuppli, the PS3 is a lot closer to breaking even than many have thought. The PS3 was losing hundreds of dollars for every console sold at launch. No matter the size of the company, it cannot afford to lose hundreds on every console when you are hoping to sell tens of millions of them. Sony had to rework its strategy and remove PS2 components from the PS3. This was much to the chagrin of the PS3 community. We all love BC, but it was simply too costly to include the chips. Removing PS2 components and other technology advancements have led to a manufacturing cost of $448.73. That is a far cry from the $840 iSuppli reported when the PS3 launched.

The cost of PS3 production will only continue to fall in the upcoming year. Couple that with strong software sales and we are hopefully in line for a price drop sometime in 09. I am guessing Fall, it always looks good to drop prices for the holidays. With all of the bad news being reported about the PS3, it is good to hear that Sony is well on the way to achieving the goals it had set out for the PS3. I am sure that the stellar titles being released next week will only further the cause.

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