Playstation 3 Now 70% Cheaper … To Build. By Jared Newman | Posted at 4:36 pm on Thursday, July 30, 2009See all: News Here’s a tidbit from Sony’s recent investor conference call that everyone but TotalVideoGames apparently missed: The Playstation 3 is roughly 70 percent cheaper to build than it was at launch. This is according to Nobuyuki Oneda, Sony’s executive vice president and chief financial officer, who provided the figure when pressed by investors. More than any of the rumors we’ve been hearing ad nauseum for months, this is the best indication that the Playstation 3 will have a lower price tag this fall. Nonetheless, it was only a few weeks ago that Sony’s chief executive, Howard Stringer, said the company would lose money on every console sold if the price were lowered. Both claims can’t be right, so one of these Sony execs doesn’t have his facts straight. Sony hasn’t disclosed the PS3’s original manufacturing cost, but a couple estimates have pegged the number at $800 at launch, dropping to $400 in January 2008. iSuppli’s estimates from last December said the console costs $448.73 to build, so there’s room for error in the unoffficial estimates. But let’s just say the PS3 build cost was $800 per unit initially. Knock off 70 percent and you’re left with $240 per unit. That means Sony not only gains from each console sold at $400 each, it can afford to bestow the now-mythic $100 price drop and still profit. Not that a price cut would surprise anyone. Game publishers have on several occasions raised their cries for a cheaper PS3 to a crescendo. The logic says more console sales equals more game sales, but Sony has always insisted it can’t take the hit up front. The problem is, both console sales and software sales were down last month, and Sony is taking huge losses. There will eventually come a point where it’s more economical for Sony to invigorate both sides of the equation than to keep maxing out earnings on console sales alone. I think that time is coming sooner than later.

I don't know were exactly he gets his numbers but if he is right then mabey this christmass will be massive mabey even a 250 price tage.  I'm in now way of saying that this is true but what do you guys think a 250 ps3 could do this christmass or 300 but 250 wow.

Because I am nice

http://technologizer.com/2009/07/30/playstation-3-now-70-cheaper-to-build/

Here’s a tidbit from Sony’s recent investor conference call that everyone but TotalVideoGames apparently missed: The Playstation 3 is roughly 70 percent cheaper to build than it was at launch.

This is according to Nobuyuki Oneda, Sony’s executive vice president and chief financial officer, who provided the figure when pressed by investors. More than any of the rumors we’ve been hearing ad nauseum for months, this is the best indication that the Playstation 3 will have a lower price tag this fall.

Nonetheless, it was only a few weeks ago that Sony’s chief executive, Howard Stringer, said the company would lose money on every console sold if the price were lowered. Both claims can’t be right, so one of these Sony execs doesn’t have his facts straight.

Sony hasn’t disclosed the PS3’s original manufacturing cost, but a couple estimates have pegged the number at $800 at launch, dropping to $400 in January 2008. iSuppli’s estimates from last December said the console costs $448.73 to build, so there’s room for error in the unoffficial estimates.

But let’s just say the PS3 build cost was $800 per unit initially. Knock off 70 percent and you’re left with $240 per unit. That means Sony not only gains from each console sold at $400 each, it can afford to bestow the now-mythic $100 price drop and still profit.

Not that a price cut would surprise anyone. Game publishers have on several occasions raised their cries for a cheaper PS3 to a crescendo. The logic says more console sales equals more game sales, but Sony has always insisted it can’t take the hit up front.

The problem is, both console sales and software sales were down last month, and Sony is taking huge losses. There will eventually come a point where it’s more economical for Sony to invigorate both sides of the equation than to keep maxing out earnings on console sales alone. I think that time is coming sooner than later.

wall of text= not gonna read

:D

Sony should sell them at 300 and make a 60 dollar profit. They could do a 250 price and generate Wii sales, but Sony as a whole needs more money. But only time will tell!

Ok hold on I'm on my pre give me five also it didn't seem to have a lot of girth but just what if

Lol at $250, Microsoft would have to cut the price to $0, to compete with those sales... haha

In all reality? No, but still would be insane sales none-the-less.

Money would be nice but that would probably be more than the 360 holiday sales last year and go a long way for gmes like lets say 10 million gt5 sales without bundles

I bought my PS3 already for 539 infact, I wouldn't mind paying the same price again, I love it. But i'm excited for people who haven't got one and want one. I got so many friends in RL waiting for this price drop.

http://technologizer.com/2009/07/30/playstation-3-now-70-cheaper-to-build/

There is more to the price of a console than its manufacturing cost. You have to add on warranty expectations, shipping, difference between price tag and what retailer pays, customer support, legal, etc.