PlayStation 3 Production Costs Cut in Half Since Launch

By Chris on Saturday, January 12th, 2008 at 8:28 PM PST In Game Companies, Game Consoles, Game Platforms, Gamer Life, Hardware, Sony, Sony

ps3 PlayStation 3 Production Costs Cut in Half Since Launch

It’s clear that the PlayStation 3’s high price has been the main issue it has faced in its first year on the market, with a $100 price drop bringing the price down to a $400 mark that’s far from mass market. But through the removal of certain parts and other factors, the price to build a PS3 is now down to around $400 – roughly half the $800 it cost to produce the system prior to its November 2006 launch.

While this doesn’t have any immediate impact on gamers, as the production costs on the system decrease, Sony is then allowed the flexibility to lower the system’s retail price. Nothing is imminent, but given some time, we’ll definitely be seeing at least one price cut on the system in 2008.

My guess? We see a $300 PS3 by the end of the year.

BusinessWeek via PS3 Fanboy

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2 Comments on “PlayStation 3 Production Costs Cut in Half Since Launch”

  1. lorgar says:

    I’m still amazed how these production costs work…I remember seeing a graph in an old Gamepro showing the price cuts of the PS one, in order to build the case for impending ps2 price cuts back when it was released. I was astounded how much it cost at launch and how quickly it dropped. I kinda missed the pricing with the PS2…but with the ps3 i have been following it since launch. I already bought one and all but its still kinda neat to track that stuff…albeit pointless.

  2. Guest says:

    i don”t think anybody is over paid for the ps3, past or present. it all about engineering works to eleminate certain processes/components of the ps3. Sony must got very good engineers to come to this conclusion this quick. i guess they don’t got a reputation for high qualify products such as lcd etc… for nothing.

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