Sony losing less money on the PS3, could turn a profit soon


We told you back in May that Sony could be losing around $260 per PS3 sold. Well, according to iSuppli, the device now uses considerably less parts and costs much less to build than when it was first released in 2006; the unit could be nearing break-even and Sony could even start turning a profit on this console in the near future. When Sony first launched the PS3, the total cost of all the components used to build it was more than $840 for the 80GB model that sold at $599, and $805 for the 40GB model that sold for $499. Today, the loss has dramatically declined, where the PS3 now costs $448.73 to build while selling at $399. Even though Sony is still losing about 50 bucks for every PS3 sold, they’re bringing in the money on games and accessories.

When the PS3 was first released, the PS3 used a total of 4,048 different parts, including those in the handheld controllers. Now the console is built with 2,820 parts, about a 30% decrease. The two main chips inside the PS3 have also experienced a significant cost reduction: the cell chip inside the console which first cost $89 in 2006, now costs $46. The cost of the Nvidia Reality Synthesizer, responsible for the PS3’s amazing graphics, has come down from $129 to $58. According to iSuppli analyst Andrew Rassweiler, the chips have been significantly redesigned with features for functions that used to be handled by separate chips inside the system. These chips are now using less power, which then results in a cheaper power supply and a more efficient, greener machine.

I think Sony has been particularly nice in adjusting the prices according to their increased cost efficiency. We saw a $100 price cut back in July along with the discontinuation of the 40GB version, leaving only the 80GB version for $399. My parents and I just bought one of these for my sister; her and her husband were debating over getting one of these for a year now. This game console + blu-ray player will go perfect with their new Samsung TOC series HDTV. The PS3 is still an amazing deal for a gamer and the HD movie lover, in my opinion.