PlayStation 3 Now Costs Sony $400 to Manufacture

[Daniel ~]

Written by Daniel
Thursday, 17 January 2008
PlayStation 3 Now Costs Sony $400 to Manufacture
Marcus Yam (Blog) - January 14, 2008 6:29 PM
DailyTech

PS3 costs less than half to make than it did a year ago... Front Page

[cloasters]

I suppose that Sony hopes to profit from the games they sell for PS3. If it really cost them $800 to build them a year ago, that means a tall stack of games. Maybe selling 8 or so games per owner is a done deal?

[Gizmo]

The Nintendo Wii is the exception to the rule for console games: Nintendo made a profit on it from Day 1. Historically, the console is a loss-leader; get people to buy the hardware, and then soak them on the software. Engineering expenses are comparable between software and hardware, but manufacturing costs are much, MUCH lower, meaning that the potential profit margin can be much better.

So yeah, Sony are banking on the idea that they will make up the console losses with software and peripheral sales.

[danrok]

They can expect to make a tidy sum on peripherals, especially with the new Dual Shock 3 controller.