PlayStation 3 Manufacturing Costs are DualShockingly Low
Following the end of Quarter 1 2009, Sony held a conference with several overseas investors. During this conference the CEO and Executive Vice President of Sony, Nobuyuki Oneda, announced that manufacturing costs for the PlayStation 3 have dropped significantly since launch.
Nobuyuki Onedi stated:
“The cost reduction since we introduced the PS3 is very substantial and this is on schedule. We don’t disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule.”
After pressure from investors to give specifics he replied:
“About 70%, roughly speaking.”
According to several sources, the PlayStation 3 cost Sony roughly $800 per unit to manufacture upon launch in November 2006. If Sony CEO Nobuyuki Oneda] is accurate when he states manufacturing has dropped about 70%, this means that currently each PlayStation 3 costs only about $240 to manufacture. This could mean that a $100 price drop in the near future would be safe and highly effective for sales.