Sony: PS3 Manufacturing Costs Down 70 Percent

Over time, parts get cheaper and companies get better at the manufacturing process. Case in point: the PLAYSTATION 3.

In an investor call, Sony corporate CEO Nobuyuki Oneda revealed that PS3 manufacturing costs have dropped 70 percent.

"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," said the exec.

When pushed, Oneda said the overall cost of making a PS3 was down "about 70 percent, roughly speaking". At launch, the 60GB PS3 model sold for US$599, and that was at a loss.

Sony Corporation Q1 FY09 [Sony via TVG via VG247]


    I gather they're making money now. With the blu-ray market only going to rise, it would be cheaper at manufacturing those parts for the PS3.

    How big is the Blu-ray market anyway these days? Has it or will it even overtake the regular DVD market or whatever it is called?

    Does that mean they can make it cheaper now? Or are they going to continue to sell it at the same price with an increased profit margin to recoup all the money they lost when it cost more to make then they sold it for?

    Still a long way to go to reach parity with the competition. I wonder if some of that 70% will get passed on to the lowly consumer anytime in the next 12months?

    Have Sony made back the $100M+ development costs of "Cell" yet?

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