Sony CEO Nobuyuki Oneda has stated in a conference call, reported by TVG that the console is now 70% cheaper to manufacture than it was when it launched in November 2006, (March 2007 here in the PAL regions) which comes as a nice surprise after they stated back in Jan 2008 the cost of producing the console had fallen to roughly around $400 per system.

This is good news for the console giant to prepare to make a price-cut (if they are willing to forego profits for more systems being sold this holiday season) or in preparation for the much rumoured PS3 slim!

We, once again, will have to wait and see what comes out of this announcement of reduction of the price the console costs to make!

Link - http://www.eurogamer.net/articles/ps3-now-70-per-cent-cheaper-to-make

I was just about to post that. Amazing. simple amazing

someone already has posted it. http://www.vgchartz.com/forum/thread.php?id=81427

Based on the supposed $840 initial manufacturing cost of the original 60GB SKU, that would be about a current cost of $252 per unit.

If correct this would show the correlation between the cheaper manufacturing cost of a PS3 Slimline model, a significant price reduction and SCE coming closer to meeting their 13m sales projection for 2009 (still looking very unlikely at this point).

a slim version can get manufacturing cost to less than 350$.
hell they can do 299$ by holidays and only loosing about 20-40$

That can't be right, unless it is 70% less than a figure from before the $840 one

Duplicate thread, but good news to post none the less.

70% less would be 30% of original and 30% of 840 would be $252 so I believe it is correct.

So how are they losing money when they are making $150 on each console sold?

^They WERE losing money.

It's been a long time since they gave updates like this, and in between these updates people just speculate.