An analyst for investment bank Nikko Citigroup has stated that thanks to the redesigned 40GB PS3 Sony has whittled down the amount it costs to manufacture its console from $800 to around $400.
Spong quotes Kota Ezawa as stating: "We applaud Sony's efforts to shrink the PS3's chips and tweak its design. Already such changes have cut the cost per machine to around $400 now, from above $800 just before it went on sale in November 2006.
"We think the biggest factor here is that simplification has become possible through a reduction in the parts count, leading to a reduction in costs."
By phasing out its higher end models, and in turn scrapping the inclusion of a memory card reader, two USB ports and a number of smaller components related to backwards compatibility, Sony has finally neared the point of making money on every machine sold.