Research firm iSuppli suggests the Sony is closing the gap between the cost of making a PlayStation 3 versus the retail price, reporting that the loss on each system sold has dipped below US$50.
iSuppli indicates that each US$399 system is now costing the company US$448.73, which makes the loss on each system just a hair under US$50. This of course is a huge improvement over the launch figures, which had the US$599 model costing Sony upwards of US$840 to manufacture. iSuppli cites a decrease in parts from 4,048 to 2,820, the lowered price of core components like the Cell processoe and the Nvidia Reality Synthesiser, and the removal of the Emotion Engine as key factors in the console's reduced cost.
Great news, but with analysts and consumers alike calling for a lowered price tag, I wouldn't expect the PS3 is going to break even any time soon.