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PlayStation 3 manufacturing costs drop 70%

By Kath Brice

Fri 31 Jul 2009 9:36am GMT / 5:36am EDT / 2:36am PDT

"On schedule" cost reduction could pave the way for rumoured price cut

Sony Computer Entertainment

Sony Computer Entertainment is a Japanese videogame company specialising in a variety of areas in the...

The manufacturing costs of the PlayStation 3 have dropped by 70 per cent, Sony Corp CEO and executive vice president Nobuyuki Oneda has revealed.

Speaking during a conference call for overseas investors following Sony's Q1 2009 financials, Oneda revealed the company is on track to meet its cost reduction forecasts, reports Total Video Games.

"The cost reduction since we introduced the PS3 is very substantial and this is on schedule," said the exec when questioned on the console's manufacturing figures. "We don't disclose how much of the PlayStation 3, specifically the cost deduction, was achieved during the past two years. But that is on schedule."

When pressed further for specific figures, Oneda replied: "About 70 percent, roughly-speaking."

Exact manufacturing costs for the PlayStation 3 haven't been made public by the company, however it was estimated the console originally cost Sony USD 800 (GBP 485) per unit when released, resulting in a loss on every one sold.

In January 2008, reports indicated that manufacturing costs had been reduced by 50 per cent to around USD 400 (GBP 243).

A further 70 per cent drop on this figure would suggest costs now sit at around USD 240 (GBP 146) per unit. A figure which could indicate room for the widely rumoured price cut due later this year.

The 80GB PlayStation 3 currently retails for GBP 299.99; USD 399.99 (GBP 243) in the US.

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