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Sony Crop's CEO Nobuyuki Oneda has revealed that manufacturing costs of the PlayStation3 have dropped by 70%. This strongly suggests that there may be a price cut, despite Sony saying otherwise every time they're asked about it.
During a conference call for overseas investors following Sony's Q1 09 financials, Nobuyuki Oneda Sony Corp's CEO and Executive Vice President has revealed that manufacturing costs of the PlayStation3 have dropped by 70%.
“The cost reduction since we introduced the PS3 is very substantial and this is on schedule,” Oneda-san replied when asked about manufacturing costs. “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.”
“About 70%, roughly speaking,” Oneda-san added when pressed further on the matter.
Although a precise manufacturing cost isn't known, it's widely believed that the PlayStation3 originally cost Sony approximately $800 (£485) per unit. In January 2008 reports surfaced that the manufacturing costs had been reduced by 50% to approximately $400 (£243). Although Sony wouldn't elaborate on exact figures, the 70% decrease suggests that costs have come down to around $240 (£146) per unit.
The 80GB PlayStation 3 currently retails for £299.99, $399.99 (£243), and 39,980 yen (£254) in the UK, US, and Japan respectively, which suggests Sony has room to make the widely rumoured $100 price cut.
Additional sources:
- PlayStation 3 Manufacturing Costs are DualShockingly Low (playstationlifestyle.net)
Comments
Hells Yes, 70%? This is going to do wonders for holiday sales. I'm also anticipating a firmware update that pushes PS2 backward compatibility by using the cell processor instead the old software emulation method, and ps2 emotion engine chip requirement. Last year saw the (what I see as the final) price cut of the PS2. Pushing people into jumping onto the Ps3 bandwagon with a price cut would mean allowing the systems to play Ps2 games.
And people said the Ps3 wouldn't last.
About time they're making profit on the hardware itself, and the (relatively) steady pace they've been moving the machines I'm sure they're nearing breaking almost even.
Yeah, they can afford the price cut, they could afforded it months ago, it's all about planning.
When Sony made the PS3 , it was for make profit ... they would NEVER sale a new product less than the production cost ... let's say that with the blu-ray player, PS3 could have had a 800$ price TAG.
The PS3 IS cheap to produce , that's what mass production is about ... EVEN IF they had a high failure rate AT THE FACTORY , it would cost them less than a REPARATION after sale.
In other words, if they lost 200 bucks per console, but made $5 bucks on a movie purchase and $10 on game, eventually it would even out.
Unfortuneatly there has been no word on the Slim for awhile now, and even if there was word I don't think Sony has confirmed it.
How's that for savings?
If the PS3 dropped in price, I would probably get one, If I had the money. Because as of right now I don't want it badly enough to go out and get it. Know what I mean?
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