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Forums - Sony Discussion - iSuppli: Teardown of Sony's PlayStation 3

Marty8370 on 23 December 2008

According to iSuppli, the device costs significantly less to build than when it was first released in 2006, and is nearing break-even

iSuppli: Teardown of Sony's PlayStation 3

ISuppli estimates the Cell chip costs Sony:

$89 - 2006

$64 - 2007

$46 - 2008

ISuppli estimates the RSX chip costs Sony:

$126 -2005

$83 - 2007

$58 - 2008

The PS3 now costs $448.73 to build while selling for $399. So Sony make a loss of only $48.73.



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jerseyboy609 on 23 December 2008

nice



starcraft on 23 December 2008

It appears to not factor in assembly costs, as well as distribution and storage costs. This is not good. I thought they were substantially closer to breaking even than this.

I wont speculate as the how much those factors add to the $448.73 component cost, but even if it's only a few dollars its a hefty loss for those looking for a price cut soon (like yours truly) so as to pick up the console.



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Rath on 23 December 2008

iSuppli are the idiots who predicted that the Wii would have negative sales in order to have the PS3 come out on top this generation.



mysticD on 23 December 2008

Wait didn't Dkholer went to MS forum with "insider" information that PS3 only cost $350.00 to build.

http://www.vgchartz.com/forum/thread.php?id=53240&page=4


And Groucho call us bunch of ignorances when we ask him to provide something to back up his claim.

So after 2 years Sony still lost $50.00 per console... it make sense why they would put out the 160GB sku because with that Sku at least they are breaking even or even make some money.



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Marty8370 on 23 December 2008
starcraft said:
It appears to not factor in assembly costs, as well as distribution and storage costs. This is not good. I thought they were substantially closer to breaking even than this.

I wont speculate as the how much those factors add to the $448.73 component cost, but even if it's only a few dollars its a hefty loss for those looking for a price cut soon (like yours truly) so as to pick up the console.

 

It states the amount of parts used in PS3 production has gone down by 30%, so no doubt assembly cost will have gone down also.

More PS3 production cost reductions are expected Feb/Mar 2009. That's when Toshiba starts Cell & RSX production at 45nm.



N.Genckel on 23 December 2008

Sweet!!!!

I love only losing a little money instead of alot. It's just better.



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Jo21 on 23 December 2008
Marty8370 said:
starcraft said:
It appears to not factor in assembly costs, as well as distribution and storage costs. This is not good. I thought they were substantially closer to breaking even than this.

I wont speculate as the how much those factors add to the $448.73 component cost, but even if it's only a few dollars its a hefty loss for those looking for a price cut soon (like yours truly) so as to pick up the console.

 

It states the amount of parts used in PS3 production has gone down by 30%, so no doubt assembly cost will have gone down also.

More PS3 production cost reductions are expected Feb/Mar 2009. That's when Toshiba starts Cell & RSX production at 45nm.

 

this



scottie on 23 December 2008

@ Starcraft - At a guess the manufacturing and shipping costs are about cancelled out by the higher pricetag of the PS3 in other countries



Marty8370 on 23 December 2008
N.Genckel said:
Sweet!!!!

I love only losing a little money instead of alot. It's just better.

 

I agree.

Feb/Mar 2009 could easliy be the break even/even a profit point. Reason: thats when there next chip process shrink for cell & RSX too 45nm, that could easily shave off the $48.78 loss. Possibly even more.