iSuppli says PlayStation 3 costs $806-840 to make

A team of analysts at market research firm iSuppli has taken apart a PlayStation 3 console and priced the individual components to get an idea of just how much Sony is losing on each unit. According to the analysts’ findings as relayed by Gizmodo, the $599 “premium” flavor of the console costs a whopping $840.35 to manufacture, while the $499 base model is only marginally cheaper at $805.85. Surprisingly, the analysts say the most expensive component is not the Cell processor ($89) or the Blu-ray drive ($125), but the Nvidia-built “Reality Synthesizer,” which costs Sony a cool $129. If these findings are correct, Sony is effectively losing $241.35 to $306.85 on each PS3 sold.

On the other side of the next-gen fence, Business Week estimated last year that Microsoft was losing a more reasonable $126 on each of its $399 Xbox 360 consoles. Production and component costs have likely dropped for Microsoft since then, too.

Comments closed
    • ripfire
    • 13 years ago

    Maybe this is why Sony is limiting their unit output because they don’t want to feel that huge hit for every PS3 sold. ๐Ÿ™‚

      • nonegatives
      • 13 years ago

      I just saw a dozen people camped outside Walmart, now I know why. It’s gonna be a green christmas.

    • UberGerbil
    • 13 years ago

    So $125 is Sony’s cost for a BluRay reader? I was at Fry’s today, and bare Sony BluRay writers for the PC (P-ATA, still not SATA, /[

    • Krogoth
    • 13 years ago

    Too bad that scalpers get more of a profit then that figure. ๐Ÿ˜‰

    • albundy
    • 13 years ago

    sucks to be sony baloney.

    • Vrock
    • 13 years ago

    OK…here’s what we do. Everybody buy a PS3, but then don’t buy any games/ Blu-Ray discs for it. That’ll fix Sony! ๐Ÿ˜‰

      • d2brothe
      • 13 years ago

      I believe that was already suggested. But what we have to do is strip them for components and sell off the scrap, turning a profit for ourselves, and a loss for sony…mwhahahaha

      • Sargent Duck
      • 13 years ago

      Well, that’s already been done in Japan. 88,000 PS3’s sold, and only 60,000 games. That’s not good numbers if they want to try and make money from software. Not to mention that a lot of developers aren’t that excited about making PS3 games.

        • d2brothe
        • 13 years ago

        Heh…I don’t blame them, I wouldn’t be too excited about programming for Cell Either

    • paco
    • 13 years ago

    “The Xbox 360 on the other hand, costs $323 to make, these days. ”

    According to the Gizmodo Article.

      • Cyril
      • 13 years ago

      The BusinessWeek article says the /[

    • RickyG512
    • 13 years ago

    so why are they doing this

    do u mean the xbox 360 will be 65nm next year

    • UberGerbil
    • 13 years ago

    And MS is scheduled for a process shrink next year, which will drop their costs further (whether they just pocket that, use it to drop the price of the 360, and/or introduce a new version with some new features, is probably going to depend on how the 3-way fight goes this christmas).

      • SGT Lindy
      • 13 years ago

      They wont introduce new features. It would piss off the current users…and make it harder for game makers….to code for two versions. They could ramp up the clock speed…but then you dont want a game to run OK on the older version and better on the new version.

      The cost will go down and so will the heat. They will then have the option of making more money or lowering the cost.

        • d2brothe
        • 13 years ago

        Well they could do an upgrade, after all, N64 had its expansion pack….those were the good old days

          • Wajo
          • 13 years ago

          yes, but any user could buy an expansion pack… they cant modify the cpu… except for errata fixing or something like that.

        • UberGerbil
        • 13 years ago

        Of course I wasn’t suggesting a change in the CPU or programming model. I was talking about plowing the savings into other features — eg HD DVD drive, larger hard drive, more output or controller options — perhaps in a new “premium” model while the current “premium” takes over the spot (and price) of the “core” model. They’d wouldn’t piss off existing customers and they might even get some upgrade sales from them.

          • ripfire
          • 13 years ago

          Microsoft being nice and pass down the savings to the consumers? Ha! Why lower their price when there’s no competition in their league?

      • packfan_dave
      • 13 years ago

      I strongly suspect there will be an Xbox 360 price cut about the time the PS3 becomes available in volume (i.e. Q2/Q3 2007), especially if they’ve already rolled out a die shrink.

      Now, if it were me doing that price cut, I’d cut the ‘premium’ 360 price by $100, discontinue the Core system, and drop the price of the hard drive add-on to $50 (and include a free year of Live! or a free game or some other big incentive to make sure almost everyone gets one). But it probably won’t work that way.

    • PerfectCr
    • 13 years ago

    ouch

    • willyolio
    • 13 years ago

    “reality synthesizer”
    i wonder what nVidia calls it…

      • shank15217
      • 13 years ago

      G70..or old technology… lol i wonder what sony thinks of then new g80.

        • 2_tyma
        • 13 years ago

        I duno bout SONY but I think the G80 anally rapes the competition right now, but if Sony included a g80 itd make the MSRP in the U.S. $1000 if not more.
        With the way they assembled the ps3 so late they prolly could of included it no problemo

      • ripfire
      • 13 years ago

      Ha! That explain’s Sony’s behaviour the past few months.

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