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Sony’s PlayStation 3 Costing It Less

29 Dec, 2008 By: Michael Lee

Sony has reduced the design cost of its next-generation PlayStation 3 (PS3), with a more integrated console some key changes in components from the previous model, according to analysis by iSuppli Corp.

Based on pricing from October 2008, the latest version of the PS3 carries a combined cost of $448.73, a 35% reduction from $690.23 for the first generation model, using pricing from mid-2007, according to iSuppli’s analysis. 

Previous-generation PS3s were sold at a significant loss, which the company made up for through game title sales and royalties.

“With its new-generation PS3, Sony has come close to breaking even, although it probably hasn’t quite reached that mark yet,” and Andrew Rassweiler, director and principal analyst, teardown services, for iSuppli. “With iSuppli’s estimated PS3 cost at $448.73, the product retailing in the United States at $399 and taking into account other expenses, the PS3 may be able to break even in 2009 with further hardware revisions.”

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