PS3 now 70% Cheaper to Produce!

[Millennium]

Squall_Leonhart said:

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

Foregoing profits for higher sales is exactly what got Sony into this mess. The fact that they haven't cut the price already is strong evidence that they have finally come to their senses about this predatory and ludicrously risky practice, and they will not be so quick to do it again.

By the way, something is wrong with somebody's numbers. For the console to be 70% cheaper at $400, this would mean that it cost over $1300 to produce at launch, meaning that the margin of loss on a launch PS3 would have been over 50%. Although I suppose that if anyone could possibly be that full of hubris then it would be Sony, but I have trouble believing that even they would do something that risky.