PS3 production costs have dropped 70 percent

PlayStation 3

Sony CEO and executive VP Nobuyuki Oneda has announced that production costs for the PlayStation 3 console have decreased by 70% since its 2006 launch.

In a recent conference call Oneda stated, "The cost reduction since we introduced the PS3 is very substantial and this is on schedule." He went on to clarify, yet still remain as vague as he could manage with an estimate of "about 70%, roughly speaking."

So does this mean that a retail price cut is in store for the near future? It’s a possibility, but because the PS3 was rumored to have cost about $800 per unit to manufacture upon release, thereby costing Sony money with each sale, they may be interested in making up some of that lost revenue before passing along the savings. If the purported $800 figure is accurate, then one PS3 now costs Sony $240 to produce, earning a $159 profit with each sale at an MSRP of $399.

Surely a $50 price cut wouldn’t be unreasonable, would it, Sony?



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Author: Eddie Inzauto View all posts by
Eddie has been writing about games on the interwebz for over ten years. You can find him Editor-in-Chiefing around these parts, or talking nonsense on Twitter @eddieinzauto.

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