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PS3 production costs down 70% (CAN I HAVE A PRICE CUT PLZ!?) photo

Great news! Sony CEO and executive VP, Nobuyuki Oneda has boasted to the world that PS3 production costs are now down by 70%. This is great news for ... well ... just Sony, really. Good news for Sony, and nobody else. 

"The cost reduction since we introduced the PS3 is very substantial and this is on schedule," proclaims Oneda. He wouldn't go into specifics, as Sony has never been forthcoming about production costs, but did confirm a reduction of 70%, possibly because Sony is making the things out of cardboard. It's not yet been revealed what the PS3 cost to make in 2006, but it was believed to be setting Sony back by about $800/£430 per console. 

So, we now know that PS3s are cheaper than ever to make. Will that long-awaited, almost legendary price cut be coming soon?

Yeah, probably.








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Jim Sterling serves as reviews editor for Destructoid.com, head of the Podtoid podcast, and produces a number of news stories, original features, one-of-a-kind videos. With his passionate argumentative style, controversial opinions, harsh delivery, and dedication to brutal honesty Sterling is a name that you can't help but recognize. Likes PS2, iPod Touch, Silent Hill 2, Metal Gear Solid, Dynasty Warriors 3 Meet the rest of the team



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44 comments | showing # 1 to 44
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Visc's Avatar - Comment posted on 07/31/2009 08:24
Visc
That's probably the best header image that i have ever seen.
Marioland's Avatar - Comment posted on 07/31/2009 08:24
Marioland
Sony found how to produce things! That's good.
PySk's Avatar - Comment posted on 07/31/2009 08:32
PySk
Price cut announcement at gamescom Cologne? Maybe...
VWGTI's Avatar - Comment posted on 07/31/2009 08:35
VWGTI
@ Visc

I think it's because of the legs and feet. I actually chuckled at this one. The faces are still creepy as hell though.

What will people complain about next after the inevitable price cut?
Chronic Logic's Avatar - Comment posted on 07/31/2009 08:38
Chronic Logic
PS3 now take 70 percent less money to make? What's the secret? Did they use better parts to make their newer PS3's?
Marioland's Avatar - Comment posted on 07/31/2009 08:45
Marioland
@chronic

They found that they can use screws made of aluminum instead of titanium ones :P

They also found that they can use production robots. :P
Loogibot's Avatar - Comment posted on 07/31/2009 08:48
Loogibot
Price cut in October confirmed.
Sexualchocolate's Avatar - Comment posted on 07/31/2009 09:03
Sexualchocolate
The PS3 is priced perfectly for what it is. If you want something CHEAP buy a fucking xbox!
JustLikeBuck's Avatar - Comment posted on 07/31/2009 09:13
JustLikeBuck
Sure everything could be cheaper... but is £275 for a console and a game so expensive when you wouldn't find a Media Center PC that does the same for the price?

It's expensive for a games console, but it does a hell of a lot more than play games. Though whenever SONY say it's an Entertainment System, rather than a Games Console, we always laugh at them and think they're just being pretentious.

SONY is definitely this gen's whipping boy!
Havoc Fang's Avatar - Comment posted on 07/31/2009 09:15
Havoc Fang
Nice work, Sexchoc. Great turn around.

But yeah. I'm still keeping with the idea that they are going to knock down the price so little it will not even matter. Not because I want them to, as I myself would like to spend less when I get one. But because it would be fucking hilarious.
Quiotu's Avatar - Comment posted on 07/31/2009 09:15
Quiotu
Here that... that is the sound of inevitability...

Agent Smith quotes aside, Sony's always been better at dropping hardware prices than Microsoft. Sony's just had trouble marking it down because, well... it's newer hardware than Microsoft's. Sony can almost always manufacture consoles cheaper because they actually design or make the hardware, compared to Microsoft who uses other company's hardware... and has to pay to use it. It's always cheaper not having a middleman.
TheSinatraHandShakeCode's Avatar - Comment posted on 07/31/2009 09:16
TheSinatraHandShakeCode
-and the console wars begin-

Yawn, gettin sick of seeing this in comments on websites, pathetic

Anyway, congrats to Sony! Thats excellent news
BGFUSAB's Avatar - Comment posted on 07/31/2009 09:25
BGFUSAB
Hopefully they'll get it down even more. I've already decided I'm going to pick up a PS3, but I'm waiting for the price to come down.
Static Jak's Avatar - Comment posted on 07/31/2009 09:35
Static Jak
Now all that's left is a price drop and eveyone's happy.
Doesn't even need to be that big a drop. Just enough to push people over the edge and buy it.
Shadowiii's Avatar - Comment posted on 07/31/2009 09:45
Shadowiii
Drop the dang price so I can finally afford one. I really need God of War 3.
Seriously, though, why would they announce this if they WEREN'T planning a price cut? They know the internet buzz, and saying "Ha ha, it's 70% cheaper BUT WE STILL AREN'T CUTTING IT LOSERS!" would be a HUGE douche move.
Granted, this is Sony PR, so I guess it could certainly happen.
Ganjookie's Avatar - Comment posted on 07/31/2009 10:00
Ganjookie
I'm going to wait for some slick industry analyst to make up some price cut and how SONY will be cutting by Summers End, when it will really happen after the 2009 winter holidays.
sexycommando's Avatar - Comment posted on 07/31/2009 10:20
sexycommando
so when do we get to start paying 70% less for a ps3?

*trollface*
Rational Animal's Avatar - Comment posted on 07/31/2009 10:25
Rational Animal
They still lose money on every unit they sell.
Gridl0k's Avatar - Comment posted on 07/31/2009 10:29
Gridl0k
It's been confirmed to me by SCEE there's a price cut coming in the next 6 weeks or so, but it won't be "sub-£200".

I could tell you who I am, but then I'd have to kill myself.

You wouldn't want that on your conscience, right?

Right?
otikik's Avatar - Comment posted on 07/31/2009 10:42
otikik
I'm getting a ps2 for $80 today
Holiday's Avatar - Comment posted on 07/31/2009 10:54
Holiday
Xbox 360 Pro 60Gig + Wi-Fi connector is about the same price of the current 80gig PS3 and you still don't get a Blu-Ray player. So I still don't get all the crying about the cost of a PS3.
Br0th3rGr1mm's Avatar - Comment posted on 07/31/2009 10:58
Br0th3rGr1mm
It's a pretty well known fact that console hardware is NOT intended to make money. It's intended as a lock in for making money on sofware sales, licensing and Dev / Publishing fees.

I'm guessing the 70% reduction is just now getting Sony close to breaking even at the current price point. Taking this as a definate sign of a price cut is jumping the gun. I have no doubt a price cut will happen, but the question is if they have the cajonesse to do it before the Holiday season.
K1NG J0RDAN's Avatar - Comment posted on 07/31/2009 11:03
K1NG J0RDAN
I don't find the cost THAT bad either. I bought a 60GB at launch for $600, and it crashed last year, then I bought an 80GB for $400 and sold the broken 60GB on eBay. :)
Holyetheline's Avatar - Comment posted on 07/31/2009 11:21
Holyetheline
If they drop the price I think Sony could own this holiday season.
munkee's Avatar - Comment posted on 07/31/2009 11:26
munkee
Potential price drop!??!.... Then, finally, 360 gaymers can buy a decent console :D me FTW!
coffeesash's Avatar - Comment posted on 07/31/2009 11:33
coffeesash
'Yay, we're finally not losing money on every console we make!
Price drop? Oh FFS.'
Jack Maverick's Avatar - Comment posted on 07/31/2009 11:36
Jack Maverick
I'm still pretty sure Sony is just going to troll everyone by dropping the price by no more than one dollar.
GoldenGamerXero's Avatar - Comment posted on 07/31/2009 11:48
GoldenGamerXero
The price cuts isn't happening. Now they can make PS3s without losing money and cheat people at the same time! Everyone wins! (Expect the consumer but since when has playing video games been about people having fun and enjoying yourself.)
DaedHead8's Avatar - Comment posted on 07/31/2009 11:50
DaedHead8
I would rather see true backwards compatibility put back into all future PS3s than a price drop.
Primo's Avatar - Comment posted on 07/31/2009 11:54
Primo
What are people going to bitch about after Sony drops their price?
Laird's Avatar - Comment posted on 07/31/2009 12:05
Laird
Hmm, good for them. If they dropped the price and bundled it with their motion wand, it may be a good marketing strategy. Too bad the wand doesn't come out for another year.

I don't wanna spark flames, but I can't help but be reminded of another of Jim's articles where he mentioned that it costs Nintendo less to manufacture Wiis, but they charged more to retail stores for them. Too bad that Sony's sales aren't high enough for them to get away with that.
K1NG J0RDAN's Avatar - Comment posted on 07/31/2009 12:29
K1NG J0RDAN
I don't find the cost THAT bad either. I bought a 60GB at launch for $600, and it crashed last year, then I bought an 80GB for $400 and sold the broken 60GB on eBay. :)
Arch649's Avatar - Comment posted on 07/31/2009 12:40
Arch649
Last I heard, Sony was losing $40 per unit sold. Does the 70% factor into that or is this a new number? And yeah I would like a price cut too.
aaronf's Avatar - Comment posted on 07/31/2009 12:41
aaronf
Stop bitching. I paid $600 for a launch 60GB and it's worth every penny.
rsquad's Avatar - Comment posted on 07/31/2009 12:50
rsquad
Bought a $400 dollar 40 gig the day they launched. Worth every penny.
Qraze's Avatar - Comment posted on 07/31/2009 13:11
Qraze
i don't need a price cut, the people that buy a rock band/guitar hero full kit for $150-200 need one because they can't pony up and save their money for two fuckin weeks.
Br0th3rGr1mm's Avatar - Comment posted on 07/31/2009 13:13
Br0th3rGr1mm
Not to mention ripping out the PS2 hardware (neutering the backward compatibility). No doubt that was a $50 production cost savings just in chips (no dip please).
-Ghost-'s Avatar - Comment posted on 07/31/2009 13:21
-Ghost-
Get ready for PS3 RROD's.
CBunn's Avatar - Comment posted on 07/31/2009 13:23
CBunn
I'm guessing that there will be no price cut, at least not in a short term. I've been noticing that Sony is trying to enhance the perceived value of their products by price gouging. See the new PSP, the only reason it's 250 bucks is to make it feel like a better product, and dip into apple's market while it could probably cost less than a DS
hpv's Avatar - Comment posted on 07/31/2009 13:37
hpv
Price cut is coming in September with the new PS3 Slim. The Slim will sell for $299.99 and come packed with an HDMI cable in addition to standard Playstation A/V, existing 80GB units will be $299.99 with the Killzone 2/MGS4 bundle expanded to all hardware remaining in the channel, and the 120GB Uncharted bundle will be marked down to $349.99 and include a code for the second round of the Uncharted 2 multiplayer beta/demo.

This is confirmed, as I just read it on the Internet while proofing my post.
hpv's Avatar - Comment posted on 07/31/2009 13:44
hpv
CBunn: Has anyone confirmed what price Sony is selling the PSPGo to retailers at? I don't know that they're doing it, but since it theoretically costs less to produce than the PSP-3000 lowering the price to retailers while increasing MSRP would be a good way to get them to stock a device without physical games media.

If the wholesale price is near $250 they're definitely price gouging. If it's below $200 it's a very savvy business move because they're not going to sell any units if no stores are stocking it. It's hard to tell with Sony which way they'd go, they make a lot of smart moves and a lot of boneheaded moves and neither direction would really surprise me.
Velt's Avatar - Comment posted on 07/31/2009 13:49
Velt
I think they are still in black.
TehBoognish's Avatar - Comment posted on 07/31/2009 14:35
TehBoognish
http://www.reuters.com/article/ousiv/idUSTRE56T5X220090730

Me thinks $ony is trying to make the butthurt hurt less.
KrazyKraut's Avatar - Comment posted on 08/01/2009 00:32
KrazyKraut
(*_*) (*_*) (*_*) (*_*) (*_*) (*_*)No heavy price cut, because they need to fill up their losses they made with the PS3 (*_*) (*_*) (*_*) (*_*) (*_*) (*_*)
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