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Sony manages lower PlayStation 3 manufacturing costs, still losing money photo

Sony’s PlayStation 3 costs a lot of money. Purchasing one of the sleek black monsters requires consideration. It isn’t like that that time you grabbed an incense burner from the convenience aisle because you decided your house smelled a little too much like cabbage. The reason consumers have to pay so much for the console is because it costs at least that much coin to manufacture.

All the information we’ve gathered over the console’s lifespan indicates that it costs hundreds of dollars more than retail price to assemble. Apparently, that is all about (or beginning) to change. According to a CVG report (via Business Week) Sony has recently been able to bring down console costs to $440 per unit. That means Sony is only in the red for forty dollars per console instead of around 240 bucks.

This is good news and I hope in a reasonable amount of time Sony is able to drop the prices on its machine. It needs more exposure. Metal Gear Solid 4 and LittleBigPlanet are entirely too awesome to miss.








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19 comments | showing # 1 to 19
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Drack48's Avatar - Comment posted on 12/23/2008 15:38
Drack48
A $299 PS3 has gotta happen and fast! Sorry if you are not from the US..I probably sound like a bitch when we have the cheapest prices around for the most part.
necrozen's Avatar - Comment posted on 12/23/2008 15:46
necrozen
It's a good system. It was worth every bit I payed for it. Out of every piece of machinery under my TV, it gets the most usage bu far. We were even thinking about canceling satellite on account of Hulu and other similar services (that I won't name because I'm not sure if they are as legal as Hulu is). But my gf is addicted to this ridiculous show called Jon and Kate Place 8 which is, by far, the stupidest thing I have ever seen. But yeah, she digs it so nothing I can really do about that.
Vitamin Awesome's Avatar - Comment posted on 12/23/2008 15:46
Vitamin Awesome
When is it economically viable enough for them to support Backwards Compatibility with the PS2?
Vitamin Awesome's Avatar - Comment posted on 12/23/2008 15:50
Vitamin Awesome
Err... With PS2 Games* rather. Still good to hear that manufacturer's costs are dropping.
The Scientist's Avatar - Comment posted on 12/23/2008 15:54
The Scientist
Might I say that there need to be some serious Ch-ch-ch-ch-changes before Sony dreams of being a profitable company in this economic state of disaster.
Conrad Zimmerman's Avatar - Comment posted on 12/23/2008 15:59
Conrad Zimmerman
Steely resolve is falling from me. My poor soul, all bruised passivity. All your regrets ride roughshod over me. I'm so glad that we're strangers when we meet.
parrothead's Avatar - Comment posted on 12/23/2008 16:10
parrothead
Keep getting cheaper. Wait, I already have one. Keep making good games, that is better.
WordTipping's Avatar - Comment posted on 12/23/2008 16:10
WordTipping
If they spent the effort retaining a decent gaming library as they have done reducing the parts count, maybe the PS3 would be in 2nd place instead of dead ass last.
The Amazing Shenazin's Avatar - Comment posted on 12/23/2008 16:14
The Amazing Shenazin
on a side note, why are we getting ads for the Mormon Church?
GunSlap's Avatar - Comment posted on 12/23/2008 16:41
GunSlap
Yeah, that's about the only reason I went for a 360 over a PS3, I could actually afford one at the time.
John B's Avatar - Comment posted on 12/23/2008 17:03
John B
BOWIE!!!!!
aaronf's Avatar - Comment posted on 12/23/2008 18:05
aaronf
When I was trying to decide which system to get, I actually spent some time calculating the price for everything I needed. The Xbox actually came out more expensive.

PS3: $599 (60GB launch)
Wireless Included
Blue Ray included
Free PSN
TOTAL: $599

Xbox (at PS3 Launch):
System: $299
Wireless Adaptor: $99
HD-DVD Addon: $199
1 Year XBL: $49
TOTAL: $646
(plus add $50 each year for XBL, over 5 years that $200.00 more)

So there you have it. AT THE TIME I was deciding, the PS3 was way cheaper when I factored in everything I needed. The current PS3 is still cheaper if you want wireless (and don't forget yearly XBL fees).

But if you want a bare bones system, the Xbox is cheaper at first.
JayTapp's Avatar - Comment posted on 12/23/2008 19:03
JayTapp
@aaronf

my xbox:
Total: 299$
because i don't care about HD as I still have a perfectly fine SD JVC iArt TV
my xbox is plugged diectly in the router with a small spare cable I had.
And i don't play on xbox live nor would i play on PSN because i hate playing with strangers.

Total: at the time it still was 299$ You paid more because you chose to.

A lot of people don't have HD tvs so blurays is not a strong sell point. I was for some of my friends but not for everyone.
Reisen's Avatar - Comment posted on 12/23/2008 19:08
Reisen
Its surprising - I only brought my PS3 with the intention of getting the two games mentioned in the article, but in about three months owning the console i've ended up with eight worthwhile titles all cheap second hand, still some left i'm yet to purchase.

There's some quite nice things that the PS3 can do which I didn't realise before buying one. Sony should really advertise more if they want it to sell well: people know all about the 360 and its games, but the Playstation still remains very much in the dark to the general public...
JayTapp's Avatar - Comment posted on 12/23/2008 19:12
JayTapp
arg no edit :)

I wpuld love to have a barebone ps3 that would sell for cheap.

Comon who seriously uses all those usb ports, flash card readers, sd readers. It's those little extra I know i wont use that jack the price.

Give me a 20-40gb pse without all the media reader crap i would still buy it.

Just look at ms holiday bundles vs sony.
You can get a 360 with 6 games and a 60gb for 299. Sony responds by making a 520$ 160gb ps3. Comon?

I dunno what they are doing. I was this close to buy a ps3 for LBP/MGS4 But 400$ + game plus one controller is not a good impulse buy price.

So i'll wait a bit more.
CelicaCrazed's Avatar - Comment posted on 12/23/2008 19:23
CelicaCrazed
The PS3's price was a little hard to stomach at first but being completely blown away by Warhawk helped me to get over it pretty quickly. Also, the harddrive fills very quickly once you upload all your music, movies and photos.
jestarinc's Avatar - Comment posted on 12/23/2008 19:41
jestarinc
Well, now that Bowie is involved, the PS3 will make $500 profit from each machine sold.

With Bowie, anything is possible!
aaronf's Avatar - Comment posted on 12/23/2008 19:49
aaronf
@JayTapp:

Right. I stated for *my* particular needs the PS3 was cheaper. If you don't care about HiDef, or want a hard drive, or wireless internet, by all means buy an Xbox.
pascuz46's Avatar - Comment posted on 12/23/2008 21:26
pascuz46
Well this is good news for Sony but maybe not for the consumer. Sony needs to drop that price, especially now since where in a rescission. A 299 (Us & CAN $) would have been a really good idea for the Holidays this year, but I guess Sony just cant afford too do that.
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