360 more cost-effective than PS3, says research

In an addition to its annual research on console hardware costs, US technology analyst iSuppli has evaluated that each 360 system costs Microsoft $323.30 (€249.80) to produce. The system sells in the US at a standard price point of $399.99 (€309).

The findings represent a turnaround for Microsoft from last year, when iSuppli’s 2005 report concluded that each system’s manufacturing costs came to $127 (€98.1) more than its retail value.

Last week, the company calculated that each PS3 costs Sony $805.35 (€622.2) to make – more than $300 (€232.70) more than its official US retail price.

However, the report doesn’t take extra costs into consideration, such as packaging, shipping and retail margins.

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