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Material breakdown reveals PlayStation Vita costs $159 to make

Is Sony really pocketing $140 on each PS Vita sold?

 

 

The PlayStation Vita's $250 price point is a touchy subject for many gamers.  Some think it's too high, others think if you're worried about price then you're in the wrong hobby.  Whatever your stance on the subject, we just want to know if the $250 price tag is justified.  Or if Sony is just jacking up the price to make a quick buck. 

Thankfully, UBM's Jeffrey Brown, got a rough estimate of how much it costs to create a PlayStation Vita based on a quick breakdown of the materials used in the 3G-enabled system.  His analysis prices the Vita at $159.10.

Below is the bill for each component:

  • Display and touchscreens: $50
  • Battery: $3.60
  • Cameras: $3.50
  • Wi-Fi/BT/GPS: $3.50
  • NAND: $6.00
  • SDRAM: $9.25
  • Processor: $16.00
  • BB+XCR: $16.25
  • Non-electronic: $11.00
  • Other: $30.00
  • Supporting materials: $10.00

Now before you are ready to crucify Sony for pocketing $140 on every 3G system sold, remember that there are many other factors to consider such as the retailer cut, cost of labor, research & development, marketing, distribution, and more.

Suddenly that $140 doesn't look like too much.  While Sony probably isn't losing money on each unit sold - unlike the PS3 which cost Sony losing hundreds of dollars for each console purchased - it's likely that they aren't making that much either.

It does appear, however, that Sony does have some wiggle room for a price cut, should the Vita's sales continue to drop after the February launch in the U.S. and Europe.

 

[UBM]

 

With everything else factored in, would the Vita be in fact making money and not losing on each unit sold? Assuming these estimates are correct of course.

If so the maybe there actually is room for a bit of a price cut if things don't start off so smoothly in the West.

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Also, since my work PC won't let me post pictures (Yeah, it's annoying), you will need to follow this link to see the PSVita's guts.

http://www.eurogamer.net/articles/2012-01-20-vita-innards-pictures



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