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Forums - Sales - Sony is tightening down costs for the PS3- a report on the blu ray diode

If they do decide to drop the price i hope you all arent expecting a 200 dollar price drop.. at the max they will drop it down to 500 thats it... unless Lair .. heavenly sword... uncharted drakes.. Mgs4... just completely flop...



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Bonafide732 said:
If they do decide to drop the price i hope you all arent expecting a 200 dollar price drop.. at the max they will drop it down to 500 thats it... unless Lair .. heavenly sword... uncharted drakes.. Mgs4... just completely flop...

 Yes, and Killzone 2, Warhawk, Ratchet and Clank, (Jak and Daxter the Lost fronteir) and maybe the FF XIIIs in 2007



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NJ5 said:

Kwaad, where did you get those numbers? See this link:

 http://i.cmpnet.com/eetimes/eedesign/2006/chart1_111607.gif

According to that link, in November 2006:

Emotion chip: $27 (you said $45)

Blu-ray drive: $125 (you said $200)

Cell: $89 (you said $95)

So according to this and your new cost numbers (which I don't know where you got either), the current cost savings would be at 27+75+29 = 131, best case... Now give some sources for your current $50 price of the blu -ray drive please.

 

this is not true. These are estimates by iSUPPLY. iSUPPLY has also stated that the production price of RSX
was 125$ . On the other hand merrilll lynch/morgan put that to 70$ which is more likely (if RSX is not based off a completely new architecture which could also be the case).

8800 gtx costs around 80$ to manufacture. so definitely RSX which is being mass produced should cost less (if not based off a completely dif.......).

the blue-ray diode initially used to cost 68$...that would dwindle to 8 by june.

Cell used to cost around 200$ as well. the R&D of Cell was 1.7 billion (400 million contributed solely to the research facilities in Texas,+establishments of manufacturing plants elsewhere added to the costs).

as for x360 thr price of DVD DRIVE is already lowered .the production price was at a bre minimum from the very beginning.

ps3 has achieved the economies of scale and i am sure production cost per unit has also been reduced to 500$ due to mass production.

i wont be surprised to see a price cut in June.

 

 



larry said:
NJ5 said:

Kwaad, where did you get those numbers? See this link:

http://i.cmpnet.com/eetimes/eedesign/2006/chart1_111607.gif

According to that link, in November 2006:

Emotion chip: $27 (you said $45)

Blu-ray drive: $125 (you said $200)

Cell: $89 (you said $95)

So according to this and your new cost numbers (which I don't know where you got either), the current cost savings would be at 27+75+29 = 131, best case... Now give some sources for your current $50 price of the blu -ray drive please.

 

this is not true. These are estimates by iSUPPLY. iSUPPLY has also stated that the production price of RSX
was 125$ . On the other hand merrilll lynch/morgan put that to 70$ which is more likely (if RSX is not based off a completely new architecture which could also be the case).

8800 gtx costs around 80$ to manufacture. so definitely RSX which is being mass produced should cost less (if not based off a completely dif.......).

the blue-ray diode initially used to cost 68$...that would dwindle to 8 by june.

Cell used to cost around 200$ as well. the R&D of Cell was 1.7 billion (400 million contributed solely to the research facilities in Texas,+establishments of manufacturing plants elsewhere added to the costs).

as for x360 thr price of DVD DRIVE is already lowered .the production price was at a bre minimum from the very beginning.

ps3 has achieved the economies of scale and i am sure production cost per unit has also been reduced to 500$ due to mass production.

i wont be surprised to see a price cut in June.

 

 


As always, I'd love to see some sources on those numbers... Especially the number $68.

PS: You don't need to worry about the xbox 360, it will for sure drop the price if PS3 does so first...



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larry said:
NJ5 said:

Kwaad, where did you get those numbers? See this link:

http://i.cmpnet.com/eetimes/eedesign/2006/chart1_111607.gif

According to that link, in November 2006:

Emotion chip: $27 (you said $45)

Blu-ray drive: $125 (you said $200)

Cell: $89 (you said $95)

So according to this and your new cost numbers (which I don't know where you got either), the current cost savings would be at 27+75+29 = 131, best case... Now give some sources for your current $50 price of the blu -ray drive please.

 

this is not true. These are estimates by iSUPPLY. iSUPPLY has also stated that the production price of RSX
was 125$ . On the other hand merrilll lynch/morgan put that to 70$ which is more likely (if RSX is not based off a completely new architecture which could also be the case).

8800 gtx costs around 80$ to manufacture. so definitely RSX which is being mass produced should cost less (if not based off a completely dif.......).

the blue-ray diode initially used to cost 68$...that would dwindle to 8 by june.

Cell used to cost around 200$ as well. the R&D of Cell was 1.7 billion (400 million contributed solely to the research facilities in Texas,+establishments of manufacturing plants elsewhere added to the costs).

as for x360 thr price of DVD DRIVE is already lowered .the production price was at a bre minimum from the very beginning.

ps3 has achieved the economies of scale and i am sure production cost per unit has also been reduced to 500$ due to mass production.

i wont be surprised to see a price cut in June.

 

 


 Both prices for the RSC could be right. iSupply included the 256MB of GDDR3 RAM with the RSX price. It could be that the Merril Lynch price is just for the GPU.



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Sony is doing a great job reducing the costs of the console .I think it will be in situation of lowering the price sooner than many expect .The PS1 lowered its price 6 months after introduction ,the PS2 one year ....I dont see how so many people just cant see the PS3 reducing its price in 2007 being out since november 2006.In any case this shows Sony has some advantage in the costs control over its adversaries ,as it produces most of the components of its machine and can turn the reductions in costs of those and the better efficiency producing those and the console itself into benefits or costs reduction way sooner than MS and Nintendo that just hire somebody to produce the console for them . I expect a price drop for Christmas .Even before ,if sales continue the same or even drop further .



 http://biz.gamedaily.com/industry/feature/?id=16056

Xbox 360 Costs Over $500 Less to Make than PS3, says iSuppli

Costs may soon be coming down for Sony's PS3, but they've already come down a good deal for Microsoft's Xbox 360, which costs significantly less to make according to research firm iSuppli. Now if only that would lead to a price drop at retail...

New data from the researchers at iSuppli (as reported in Digitimes) indicates that the production cost of the PS3 could be brought down by $100 thanks to the falling prices and increased manufacturing capabilities for blue laser diodes. This aligns with what GameDaily BIZ previously reported last month.

 

 

At the moment, however, iSuppli's estimates would suggest that the PS3 continues to be enormously expensive for Sony, while costs for Microsoft's Xbox 360 components are coming down. Main components in the PS3, including the motherboard, CPU, graphics processor, and chipset, total $352 compared to just $204 for the 360. Furthermore, the optical drive in the PS3 (a Blu-ray player) costs $125 compared to just $19.45 for the DVD drive in the 360.

 

Overall, PS3's total cost weighs in at $840.35 compared to a retail price of $599. Interestingly, the side-by-side chart lists a retail price of $399 for Xbox 360 Elite with a total cost of $323.30. Either it's supposed to be a retail price of $479 or the name should read Xbox 360 Pro. The hard disc drive is listed at $43, less than the $54 for the 60GB drive in the PS3. This would lead us to believe that the $43 is for the standard 20GB and not the 120GB found in the Xbox 360 Elite.

 

Regardless, it's a great sign for Microsoft if iSuppli's analysis is correct. Assuming iSuppli is referring to the 360 Pro, MS is profiting almost $77 on each Xbox 360 sold. And if the $323 is the cost of the Elite, then the profit is even higher of course. This news comes only a few days after Xbox executive Robbie Bach proclaimed that the Xbox 360 would become a profitable business next year.

 

I really think Microsoft is waiting to clear inventory with Halo 3 for a price drop.  Sony I think, is aware that Microsoft will clear inventory before the price drop, so it will try to reduce the costs without reducing the price for consumers this year.  That means when 360 drops say..$100 in early 2008 (I would guess early March or in May), PS3 will be in a position to follow suit.  Nintendo, can essentially drop price whenever it wants by cutting out Wii Sports.  By 2008, Wii (sold w/o Wii Sports) probably could sell at $150-$180 and still make a profit on each unit sold.

Edit: Gamedaily put out an update saying the cost information is from the November 2006, which means labelling it 'Xbox 360' elite was a mistake.  PS3 and 360 have likely dropped in price significantly, although no one seems to know what the Elite costs to make...



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Diomedes1976 said:
Sony is doing a great job reducing the costs of the console .I think it will be in situation of lowering the price sooner than many expect .The PS1 lowered its price 6 months after introduction ,the PS2 one year ....I dont see how so many people just cant see the PS3 reducing its price in 2007 being out since november 2006.In any case this shows Sony has some advantage in the costs control over its adversaries ,as it produces most of the components of its machine and can turn the reductions in costs of those and the better efficiency producing those and the console itself into benefits or costs reduction way sooner than MS and Nintendo that just hire somebody to produce the console for them . I expect a price drop for Christmas .Even before ,if sales continue the same or even drop further .

Sony doesn't manufacturer much if anything that goes into their consoles. It's subbed out to the same companies that Nintendo and Microsoft uses. Companies like foxconn actually build the stuff. 



It should be expected that Sony's costs will drop faster than MS's costs. Sony went bleeding-edge with the PS3 while MS used more traditional architecture. With that said, it will be a long time before the PS3 will be price-competitive with the 360. Personally, I'm hoping that MS gets their process to 65nm ASAP and drops the 360 price in August or so. That would force Sony's hand and make them consider a price drop to remain competitive. Since I already own a 360 and Wii, this means I might actually buy a PS3. I refuse to pay $600 for a console. $400, yes. Luckily I'm a patient guy. 2009 sounds good to me.




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Kwaad said:

NJ5 -

Emotion Chip - 45$
BluRay drive - 200$
Original Cell cost - 95$

 

New costs.

Emotion chip - 0 removed.
BluRay drive - 50$
New Cell Cost - 60$

 

That's roughly a 150-200$ savings.

I'm sure the costs are down more than that. It wouldnt suprise me to see a 100$ price drop on the PS3 late 2007, however I expect it more early 2008. However if they did do a price drop in 2007, that would create an amazing stir, and possibly sell a few million consoles.


 I dunno... I have to respectfully disagree.  I don't think bringing the PS3 from 599 to 499 will move that many more consoles.  Now that it is available in most areas of the Globe, the hardcore fans have been able to get theirs.  Now they have to market more to the masses and the pricing will have to reflect that.  I consider myself more of a "masses" type.  There are a few games now and/or coming out on the PS3 that I'd like to be able to play but I won't look at one untill I can get one for 300 bucks or less.  The same goes for the 360.  Yes, I realize that the unit has a blueray DVD in it, but I don't have an HD screen yet and I don't plan on having one for at least another year.  I've got a Sony WEGA CRT TV that I'm still quite happy with.  I think for a price drop to make a really significant difference, it will have to be a $200 cut.  Moving to 399 will definitely move consoles -- just not to me (yet).



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Systems I currently own:  360, PS3, Wii, DS Lite (2)
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