Report Shows Sony Close to Breaking Even on PS3 Manufacturing Cost

January 21, 2010 Written by Anthony Severino

When Sony originally launched the PS3 back in November of 2006, it carried a hefty price tag of $599, an exorbitant cost for consumers wanting to “Play Beyond”. However consumers weren’t the only ones facing such high costs. The original launch 60GB PS3s were said to cost Sony over $900 to manufacture.

Although Sony is still losing money on each PS3 sold, a recent report shows that Sony is much closer to breaking even, almost 4 years later.

Future proofing a console is no cheap task. To have cutting edge tech in the PlayStation 3, it costs money. Consumers weren’t the only ones footing the bill for the PS3 as Sony was said to be losing roughly $300 per console at launch.

Sony launched a slimmed down PS3 this past September in hopes to reduce manufacturing costs, saving Sony money and passing the savings on to the consumer with a $299 price point.

Even with the said slimming, Sony is still losing money on each and every PS3 sold, although they are getting much closer to breaking even.

A report released by iSuppli reveals the price for each component after a teardown of Sony’s console. The report shows that even after over 3 years on the market and a redesign aimed at reducing costs, the PS3 still costs quite a bit to make.

According to the report, each PS3 costs $336.27 to manufacture, with the Blu-Ray drive topping the list as the most expensive component at $66. Check out the full report below.