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PS3 manufacturing cost down 70%

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PS3 manufacturing cost down 70%

Calculations suggest that each PS3 now costs Sony less than £150 to build

The predictions have been going for over two years and continue to this day, but a new admission from Sony suggests that the way might at last have been paved for a price cut on its PS3 console some time this year.



The conclusion comes from a recent confirmation from Sony that the cost of manufacturing a PS3 is now 70 per cent less than it was when the machine was first unveiled.



“The cost reduction since we introduced the PS3 is very substantial and this is on schedule,” Sony CEO and executive VP Nobuyuki Oneda stated in an investor conference call, according to TVG.

“We don't disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule.” When pressed further Oneda conceded the reduction has been by “about 70 per cent”.

Sony has never confirmed the exact cost of manufacturing a PS3 console, though £500 was widely believed to the amount at launch. A 70 per cent reduction on that amount means it now costs below £150.



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With the PS3 selling for £300 in the UK, perhaps there is now room for Sony to budge on this price point ahead of the key Christmas hardware battle.

well that's good news from them, however

posted by tom Jul 31, 2009 at 12:08 pm
1
tom

it's good news all 'round i suppose but they still have to make up a lot of lost ground/cash over the last couple of years so i wouldn't expect to see a PS3 for less than £250 before the year's out. still, £250 with decent game/controller bundles will do well.
personally i think they should ship a copy of LBP with EVERY PS3, and probably another game like KZ2, something that gets the community going. also a slew of platinum games like Uncharted, MGS4 and other older titles would be a good idea!

seems like momentum is building for Sony this year, finally, but things have been pretty poorly managed from the outset so we'll have to wait to see how much of an impact any of this news will make.

personally i believe it being widely reported that a price cut is in the works, there are gonna be few to zero sales until then. also i think the new PSP is gonna backfire, but i'd expect to see sales of the older models pick up.

still waiting...

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But yet...

posted by Dave Jul 31, 2009 at 12:50 pm
2
Dave

... we are still paying over £250. Cut, please.. and thank you.

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Profit Time

posted by JazC Jul 31, 2009 at 12:58 pm
3
JazC

If the rumours of a patent that allows any PS3 to emulate all PS2 games is true you wont see a price cut for a while as they will add the value of having a PS2 into any current price point.

More then anything a price cut at this time of year is pointless as they can go on to assure massive trade for the end of year releases if they cut then as the combination of AAA titles and a price cut are more likely to yank people in as a combination.

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Re: Profit

posted by AH Jul 31, 2009 at 1:20 pm
4
AH

The way how Sony are about thinking solely about profit i bet they don't cut the price and aim to make a high profit on each unit sold and bank on there brand name and big new releases scheduled to come out in the coming months as there answer to peoples cries.

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Good news for Sony then

posted by Mark G Jul 31, 2009 at 1:28 pm
5
Mark G

They managed 1.1m PS3 sales in Q4, compared to Microsofts 1.2m (100,000 less), however Sony were getting a premium price for the PS3, whilst Microsoft had to price cut.

Whilst there is a media frenzy at the mo about Sonys performance, the PS3 seems to be pretty darn healty

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Cost redux?

posted by Ned Ludd Jul 31, 2009 at 5:04 pm
6
Ned Ludd

There are a couple of curious statemtns in this story...1st what is meant by"when the product was first unveiled?" Does that mean when it was first demonstrated or when it was first sold or when t was first manufactured in volume? Second, what does cost to manufacture mean? This is very vague and there are many buckets that cost can be assigned to, could it be cost of good sold, could it be transformation cost, could it be cost of goods purchased...all are very different...

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not heard that in a while...

posted by tom Jul 31, 2009 at 6:40 pm
7
tom

no theard any news on the PS2 emulater in a while, good remembering there. i do predict a price cut before the year's out with or without the emulater, and christ on a bike if people listen to Fudge-Pachter, theu should listen to me too. I know about as much as he does! (grand total of squat)

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LBP bundled

posted by Ross Jul 31, 2009 at 9:12 pm
8
Ross

we may see more items hard bundled into a new SKU rather than a price drop this xmas

PS3, official headset, HDMI cable (a good quality one), maybe even the eye cam in prep for the new motion control.

i would think if the "hallowed" firmware 3.00 can deliver new stuff to the PSN and PS3 in general they may have a massive advertising campaign. i can see lots of 30 second ads now.

add one, connect and voice chat with your friends on PSN.
add two, watch the latest music videos on vid zone, only on PSN.
add three, hi definition blu rays and wireless media server built in.
add four, show the latest games coming for the PS3 in this year
add five, if they get the video store up and running boast that aswell.

they need a marketing campaign like no other this year. summit that will say HEY LOOK AT US. but they need the tools on the system to back it up.

Just my opinion.

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PS3 price cut

posted by Kev Aug 03, 2009 at 1:52 pm
9
Kev

It a great news that PS3 price will be drop down so that I will buy a new one straight away as soon the price drop down first.
Any idea when it will be in effect?

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Kev

posted by MarketZero Aug 04, 2009 at 11:29 am
10
MarketZero

Kev, at a guess, the end of October this year.

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OTT

posted by Utra Aug 04, 2009 at 12:54 pm
11
Utra

i know quite a few people that refuse to get a playstation 3 mainly because of its OTT pricing and with the Xbox 360 selling for £100 second hand alot of people dont bother with it, this will only realy effect sonys sales if they pass the saving onto the cusumer, somthing no company is willing to do at the moment...

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loadsa money

posted by tom Aug 04, 2009 at 4:03 pm
12
tom

True that last point there, Sony still have loads of money to recoup before they even break even, never mind profit.
i still say Sony will concentrate on the relauch of the PSP, i actually saw an ad on TV for one the other day, i think that's the first i've ever seen lol esp with LBP and GTPSP coming out, also Assasin's Creed, never mind the old PS1 classics and smaller "snack" software they've been talking about a la the Iphone Apps store.

then they'll go "oh, BTW/FYI here's a few quid off the PS3 as well!"

given the amount they must have invested in the GO they're gonna have to push that thing something chronic, don't want it's big brother over shadowing it. although i do think MZ is pretty close to the mark with the October estimate, that's when the GO is out anyway.

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Mm

posted by Ruffle Aug 04, 2009 at 5:51 pm
13

They won't drop the price of the PS3 before Christmas, instead they'll add value and keep the price the same!

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