PS3 Manufacturing Costs Reduced By 70%

During a conference call for overseas investors following Sony's Q1 09 financials, Nobuyuki Oneda Sony Corp's CEO and Executive Vice President has revealed that manufacturing costs of the PlayStation3 have dropped by 70%.

[saint_john_paul_ii]

$240 per unit?

I want to see it to believe it. that means if they cut the price by $100, they will profit on each PS3 by about $60. which is really good.

[qface64]

i doubt they are or will make anything close to 60$ per ps3 that is actually ALLOT way too much actually

[heroicjanitor]

Maybe they cost $1000 to make at launch? That would leave it at $300 which still seems too high.

Edit: I mean it still seems too low =P

Ah I forgot about the retailers I am usually the one to point that out damn... So it makes sense now thanks:)

[Panthers]

Sony doesnt get $400 for each PS3 sold right? I mean the stores make money too dont they?

[saint_john_paul_ii]

so $300 still seems to high for you eh? sounds pretty low to me especially when you put inflation into the equation.

[PshycoNinja]

When the PS3 first lauched Sony said it cost $850 per console to make. So if my math is correct ( and it ussually is ) and if Sony is correct about the percentage then it costs $255 dollars to produce each console. Which means they are more then breaking even. But I think there was a mistake on what somebody weither it was the Sony exceutive or the website someone is wrong. I believe ( I think ) the PS3 costs $375 to produce now.

[WengYong]

This could be the slim. It will be interesting if it was.

[JL]

I've been saying this for a while now. Something like January of 2008 it came out that Sony had cut production costs down to like $400-450 per console. That was in roughly a year since release. Now a year and a half from that point, you don't think they cut anymore off? They cut like $400 off in just a year (granted that was a bit easier to do with nixing some things in the system, but still), I'd expect at least $100 more would've been able to be cut off by now. Especially in light of the 45nm production. I think they've quite possibly been making a profit for a lil while now. Seems they would've definitely been breaking even at least. That $255 cost per console, while being a bit lower than I'd have thought, doesn't sound ENTIRELY unreasonable. That might not be the right number, but I'd almost say that they could afford that $100 price cut everybody talks about and still be breaking even, or at least really close to it. I mean come on, we're almost 3 years into the life cycle, and at roughly the year mark they already cut $400 on that thing. Stands to reason that they've cut at least $100 more off in this past two years (year and a half).

[RememberThe357]

Oneda never said anything about it being the current market PS3.

After hearing this, I'd put money on a $300 Slim PS3. Not a lot, but I'm definitely exacting it now.

[umair_s51]

If this is true, I should sell my PS3 now and pick up the cheaper model to extend my warranty and make a small profit!

[pixelsword]

with all of the ports, backwards compatibility and the trimmings, it should fetch a pretty penny on the market in the near future.

[IdleLeeSiuLung]

I gather that manufacturing means just producing it, not including s&h to retailers, retailer cut, packaging & other misc. However, this is good news though and there is a price cut at the end of the tunnel.

[LoVeRSaMa]

And then there was Profit.

[PixlSheX]

"PS3 cost reduction "progressed according to plan""
And then.. "PS3 Manufacturing Costs Reduced By 70%"
Then i remember something about sony planning 13m units sold this year.

I'm pretty sure a pricecut/PS3 Slim is coming this year. It makes sense.

[KampferZeon]

The website did all that fancy calculations to justify its logic but totally fails to appreciate there is a difference in the exchange rate between now and 3 years ago

It was 123 3 years ago, it dive to as low as 88 in Jan 09. Now is only 94

The exchange rate totally kills any incentive for Sony to cut the PS3 price.

[Syronicus]

With the cost of the PS3 dropping and a sharp incline in Sony stock prices, you can bet that a PS3 slim is just around the corner. I know they shy away from insider trading but the signs are there and might as well be insider info. The signs are there folks, if you don't already, you might want to pick up a few shares of Sony stock. Once the PS3 slim hits, it will climb quite a few notches and you could easily make a profit.

[ultimolu]

So guys...the PS3 is still doomed right? :)

This is excellent news for Sony. They bring out a slim and I may trade in my fat one.

[gaffyh]

The Slim has to be coming for this to be true, I seriously doubt they'd be able to get the cost down by 70% on the current PS3 model.

[Ju]

Well, 70% cost reduction implies a reworked model - including the case. If its not slim, it'll still be a new version, no doubt about that.

[Real Gambler]

Manufacturing cost: $240
Storage, shipping, etc: $20
Sony making a profit: $45
Retailer making a profit: $45

End result: $350 on the shelves. Good news is Sony would be making money out of each PS3 sold, so possibly more money sent back to make games.

[Dannagar]

Recently, I saw Wal-Mart selling Blu-Ray Players for $98. That was the most expensive piece of the PS3. I wouldn't be surprised if PS3 dropped to $299 this Christmas Season.

What would Microsoft do? If Sony dropped PS3 to $299. Microsoft would drop the Xbox 360 Pro to $249 and the Arcade to $179. A win, win for consumers.

And Nintendo? I think a price drop for the Wii is in order. We are going to see Wii at $199 this Christmas.

[1ikedamaster]

This 70% reduction is from launch, everyone knows that.

[saint_john_paul_ii]

"We could see a 250$ ps3"

No, thats too unrealistic. they need to make some profit on the system even if we want such a price cut.

[Lifendz]

Sony's making a killing on the console at 399.99 if this is true. Guess a price drop might happen after all.

[njr]

I think they're gonna stick with sequential $100 price drops.

[GameGambits]

I'll be the first to say I don't care. Sony is set even if the PS3 had failed or somehow does end up failing the rest of its life cycle(it hasn't and it won't) that they could still push out a Playstation 4 when the time comes.

You freakin goobers need to stop obsessing over sales.

Anyone on N4G actually play a good game lately? Yeah I didn't think so, because 80% of you just want to talk shiny #'s talk. Get a math major and get out of here already.

Just once I'd like to see an article on here that isn't BS rumor speculation, some sort of sales charts/numbers, doomed articles, comparisons on multiplatform games that are the same dam thing, and just other pointless crap like the 10 best games that I played while I took a big dump.

How about someone in this game journalist field who reads this actually lands an interview with some game developers and ask some good questions like:
1) The importance of dedicated servers in the future of online games.
2) Where'd the plethora of RPGs go this generation?(I own all consoles now including DS and PSP... and it's still barren)
3) How game developers are letting games not worth 60 bucks sell for that price?
4) Ask Sony,Microsoft,Nintendo online reps if there is any time in the near future maybe a company will be formed that they pay them money to baby sit the online communities of games. There's things so foul, so racist, so inbred going on online in games that it's at the point where banning the 13 year old with a foul mouth isn't cutting it. What's worse is there are plenty of 18+ year olds that are in need of some serious punishment like a real life fine after a warning to stop being a racist or worse moron online who yells.(Muting doesn't stop the person from spreading idiocy...but a 50 dollar fine does...Freedom of speech doesn't exist either before you throw that in. You are dumb if you believe it ever did.)

5) Finally ask the correct developers/producers when we can see or what they plan on with these game series for fans:
1) Capcom-Breath of Fire and Megaman
2) SquareEnix-FFversus13 and Chrono
3) Atlus-Shin Megami Tensei
4) Sony-Legend of Dragoon 2 ?
5) Konami-Suikoden 6 ?

The list could go on and on. Frankly I should make it my goal when I visit this site to just reply how I have here. I want G A M E N E W S....this isn't an article about it and I'm finally fed up with how much of this site isn't game news. It's like a much dumber version of Kotaku now it's sad...

[cmrbe]

you have a good point but those stuff are also posted here. You just have to look for it.

The main reason why i like N4G is because you get the good the bad and the ugly just like the internet which is what i like. I always advocate for open systems. These articles do matter alot to the industry. Financial performance, sales performance all matter to gaming.

Imagine talking about games only and then suddenly find out that all PS3 exclusives were canceled because SCEI closed shop due to poor financial performance. Its good to know and its good to debate.

Besides, if we don't talk about sales performance then the x360 fans won't have anything to talk about lol! jk.

[IzKyD1331]

I really doubt the PS3 costs 200-300 at this point, with Blu Ray, 80-160GB HDD as standard, all the hardware is more likely breaking even for Sony right now

[40cal]

The competition should be very worried.

[MNicholas]

A $300 PS3 would be a steal given the built-in Blu-Ray, wifi, Bluetooth, HDMI, and hard-drive. If the lower cost model remains as reliable as the first and retain all the same features then Sony can still claim to be the master of hardware manufacturing.

[indysurfn]

Yeah it is obvious that the slim has had too much smoke for it to be just a rumor (even though that saying: "where there is smoke, there is fire" is not a true statement per say, even though it is a high percentage).

Yeah selling your Console NOW while saving your money for the new system and year end games is a good idea, this is the SLOW part of the year anyway. Especially with the rumor that there will be a huge pack in package this year.

I've been slapping Sony about this for awhile now, DROP THE PRICE FOOL! What if Microsoft had of gotten smart, and dropped their price even more while Sony couldn't respond? They would have had a installed base lead so big, that developers would swarmed to it like flies on a open water melon (had to clean it up). I know people will say they already did, but I mean on the level of PS1, and PS2 not a 30% ratio a 85% ratio. Now in a price war Sony is in control because they have more people that don't have the system then Microsoft does.

Microsoft has flinched, now this is a critical moment for Sony. A token $50 price drop will be such a heart break! And a eye opener for Microsoft, but a $100 drop will make all the difference, a $150 price drop would be laying down the gauntlet!

Just drop the price at least $100, and keep the increased disk size, get the system in peoples hands! And improve your third party development tools, you fart knockers! It is not a new system anymore.

[Nitrowolf2]

pricecut= second ps3 for me

[NewZealander]

price cut and slim model then sony will start selling alot better, hope the rumors of a slim model coming soon are true.

[dawgsfan117]

Why buy another PS3. Are you so lazy that you cant simply pick up your current one and move it to another location. Might as well go flush 300 dollars down the toilet.

[PixlSheX]

Moving the ps3 to another location is a pain in the as*. I have it on my bedroom, but i just have an SDTV. So when i want to play it in the 43" TV fullhd, i have to disconnect everything, take it downstairs, go up again for the hdmi cable, install everything again and then, finally, i can play.

A PS3 Slim would be the perfect solution to my problem. Edit: Or a 32" fullhd tv for my bedroom, but it's too expensive.

[Ju]

^^ Moving is not an issue, just buy a second set of cables (only power and video, costs you nothing). I am always amazed how few connections you need if you have that.

But anyway. Would you move your DVD player to another location if you'd have 2 TVs ? Didn't think so. Its not that big of a deal to have a second one.

[PixlSheX]

My point is that, if i had another full hd tv for my bedroom, i wouldn't move it because all i want is play my ps3 on 1080p. But i get your point.
Anyways, another set of cables is a great alternative, i'll try that. bubbles for the advice!

[lloyd_wonder]

I'm assuming Sony is using cheaper blu-ray diodes and the new 45nm Cell. 70% blows my mind. If Sony wanted to bundle their new motion controls and the PlayStation Eye they probably could. And IBM are working on 32nm CPUs for next year?

[The_Beast]

nope nope nope.. sony is ganna go bankrupt and ps will die, i just gotta keep believing

[El Botto]

My friends, the PS3 is going to dominate soon enough. Sony has managed a 540 cost reduction. The PS3 is expensive no more.

A pricedrop to 300 or a PS3 slim seems very likely at this point in time.

Im thinking they might even make several bundles. We all know Uncharted 2 and Ratchet bundles are coming. We all know MAG and GoW3 bundles are coming.

Im fully expecting a FF13 bundle for the price of 320 bucks! PS3 will soon sell like hot cakes.

[Sir Ken_Kutaragi]

So that means - PS3 Price cut(Maybe $299?/£199?) before xMas would =

"xBox 360 Sales Reduced By 70%" ;-D

[ultimolu]

It blows *my* mind that the jackasses, namely 360 fanatics were saying that the PS3 was dead.

How do you like them apples ya morons?

[kagon01]

the price at the same time of releasing of GoWIII, so they can do an ULTRA COMBO FINISH!!!

[Marcelles25]

you guys forget that sony cant bundle first party games with their system when they are new releases because sony wouldn't make money off the game they would be giving it away unless this is true and they were making a profit of 50 every time they sold the console then they could bundle t and make no money off each bundle sold...

[jack_burt0n]

sony stated last year the ps3 was breaking even by Oct, which is quicker than they did with the ps2 in its lifecycle problem is there has been so many bogus articles about losses with playstation which are more to do with decline in other sectors, good thing is they dont have a 1billion dollar repair bill lol

[KingKionic]

Interesting...

[RememberThe357]

Indeed...

[Sarevok]

I concur...

[Bubble Buddy]

good news, Ellipsis rock...

[pixelsword]

.

[dawgsfan117]

While I feel its interesting aswell I want every post to be a complete sentence from now on ok. ROFL

[1ikedamaster]

LOL...

[red2tango]

Cool time to grab a third PS3 =)

[Etseix]

lol

i probably will buy another ps3, ps2, PSP GO <- this is absolutely
pseye, sony headseth... aa....

the only thing that separates xbox 360 from ps3 is the price cut.. if this goes down , dam, im preety sure Sony will kick MS a$$ :P

[BaSeBaLlKiD721]

The price drop along with Madden 10 rumor could be a reality...

Now if Sony bundles a $299 PS3 slim with Madden, that will drive sales but of course not as much as if they do with GT5...

[Shadow Man]

Still no price drop damn it!!

[Marty8370]

Sony's running a business first, so they need to profit first. Then some savings will be passed onto the consummer.

[ELite_Ghost]

these 360 lil boys still have a long way to go. Give em a break they're still in middle school.

[zagibu]

@Marty8370:
Actually, businesses usually have to invest first, before they can profit, so your argument is kind of weak, spoken from a mere business perspective.

[Alcon Caper]

Sony lost $300.00 per console sold in the early years. The production cost being about $700 per console. They have a lot of money to make up. A lot. During that time the 360 was profiting by about $70 with each 20GB system sold.

That was about 2 1/2 years ago. MS has cut their production costs as well. Surely they'll have no problem undercutting Sony once again with another price cut.

From 2006: http://www.xbitlabs.com/ima...

[ZombieAutopsy]

dang 70% is alot, they can actually start making some money off it now even with a price drop i believe.

[Gitaroo]

probably smarter to price drop all the old model first and keep the slim at the price now until all the old one are phased out. That way it can help them out from making some profit to cover the lost they will get on the old one even if they slim wont sell as much at 400 bucks. Once they old models are gone then they can price drop the slim.

[cyclindk]

Sony are is moronic if they don't cut at Christmas or VERY early next year; there are so many occasions when the PS3 sells equal to or more than other platforms' multiplat titles, as well as the fact that they are on the top of many publishers lists of platform with most software sales. If they dropped the price those software numbers would fly up..

"are is" be intentional ;)

[dktxx2]

Let me ask you a question. when would a pricecut be most effective, in the middle of a recession, or after a recession?

Sony not cutting the price wouldn't be moronic, when you take in the big picture.

[imec]

before a depression.

[JonnyBigBoss]

Great to hear. Bring the Slim and nearly every person I know personally will own a PS3 within a month.

[The-Director]

The problem for the $299 PS3 is the $249 PSP GO, it's just doesn't make sense for the average buyer to see a full console only $50 more than a small handheld and it will either hurt the PSP GO or the PS3.

[kraze07]

Sony's already gonna hurt the PSPgo if they release it for that price.

[RockmanII7]

Isn't the 360 and Wii $200?

[callahan09]

I don't think it'll have any negative effect, the two units being priced similarly. My desktop is many times more powerful than my laptop, and yet I bought it 2 years before my laptop, and for less than my laptop cost when I got it this past December. People understand that nice, small, portable, sleek electronics cost a lot.

[silverchode]

doubt this is true.

[psthreee]

wait a sec 390million loss and now they r making a profit?
God is with SoNy

[lloyd_sr1]

The reductions for the new PS3s outfitted with the cheaper components are most likely not done being put together yet. Sony still sells older generation PS3s with more expensive components at a loss. This reduction is likely comprised of cheaper blu-ray diodes and the 45nm Cell.

[WAR_MACHINE77]

I believe that department also handle the viao and walkman brands as well, and both those brands have been in the crapper for a while. It could also be investments in projects that have yet to be released and wouldn't be bringing in money yet.

[raztad]

That 390m is a whole company loss not just PS business.

@lloyd

I'm sure cheaper BR is the most important factor driving cost production low. Probably the price of PS3 RAM memory, XDR (3.2Ghz) and GDDR(700MHz), got cut too.

With major titles coming like FFXIII in Japan, and probably GT5. Sony might decide not to drop the price and still sales will peak.

[Saaking]

If that's true then isn't a price cut or slim model almost guaranteed? (IF it's true)

[dktxx2]

No. sony might want to save that magic $299 price point till after the recession ends, and just float with the profits for while. Remember, Sony has belief in a 10 year plan, its year 3.

[JRaptor]

The recession is going to last a long time, even though the worst of it may be over soon. This year is probably the best time to drop the price- the system is profitable, there is now a solid game library and decent features on the console and the new motion controls (low entry cost is important to appeal to these consumers) are to be released soon.

They have gotten by with lower sales than the competition for now, but if they continue like this for several years, 3rd party support may be jeopardised. There's now nothing stopping them from dropping the price and it is just a matter of timing it so that it has the greatest effect on sales i.e. righgt before the holiday season.

[Saaking]

$299 PS3= Xbox 360 Doomsday! xD

[Mo0eY]

/end thread

[Alcon Caper]

Haha, if the PS3 cuts that low, which is ridiculous, MS will have no problem undercutting them. The production cost for the 360 is dirt cheap now, do you really think Sony has made their product cheaper to make then the blu-ray-less, HDD-less, wireless-less 360 Arcade?

[TheColbertinator]

Amazing if true. If not,nothing changes

[Nelson M]

Your Right Nothing Changes
Your Still a BoT

[ApocalypseShadow]

"OCTOBER" will be an interesting month.

secondly,kaz is headlining TGS for sony september 24 with the overall theme of "NEW TACTICS."

people want a cheaper ps3?then you are going to get it.but don't expect the shininess of the current ps3 or the features of the original that launched in 2006.

as for "the director",the 360 sells for $199 entry price.there seems to be no problem there.you could always say"well....just for $50 dollars more,i can get this....."

either you want something or not.prices mean nothing as long as the product delivers.

apocalypse................

[Aclay]

Another thing about October that seems interesting to me is that Sony is coming out with those new Colored PS3 controllers in Red and Blue.... and that's got me thinking that just MAYBE PS3 Slim consoles in Matching colors are on the way as well.

Sony sold the White Dualshock 3 controllers in Japan because there was a White PS3 to go along with it, so it's possible that Sony is coming out with those new colored controllers because they'll have matching colored consoles to go along with them.

[LukaX23]

YES!!!!!!!!!!

[kumashii38]

hmm...this article is probably a fake.

SONY's conference call for overseas investors following Sony's Q1 09
http://www.sony.net/SonyInf...

webcast
http://www.irwebcasting.com...

It seems Oneda-san did't mention about PS3 manufacturing cost, this time acound.

[JonnyBigBoss]

God bless you.

[pixelsword]

Didn't you listen to the entire thing before posting/commenting? That alone should have left no doubt in your mind...

I may listen to it myself in the morning, Lord willing, but who knows.

At any rate, good find. :)

[siren]

Just listened to all the QA. The information contained in the article above was not mentioned at all in the QA from what I heard.

The closest to mentioning it was in Question #3, and even there they didn't talk about it.

[shadow2797]

Agreed. I listened (though not that intently) and I didn't hear any mention of PS3 cost reduction. Nor did I hear the number 70 ever.

Perhaps I missed it, or they followed it up with their own question later. I just wish I knew their source.

QA 3 made me laugh when they were trying to talk about the games Haha.

'Whatever, I know they were a big deal!' (Paraphrase, obviously)

[gamerdude11]

By: SegaBoy

http://webcastingplayer.cor...

Listen to the Q&A portion
Question asked at 1:05:28
It is answered between 3:15 and 4:20

[topdawg122]

Wow that seems too good to be true

[Aclay]

If PS3 Manufacturing Costs have reduced this much, surely a price cut of some kind is on the way in the near future.... hopefully by this Fall.

Sony's goal is to sell 13 million PS3's within this Fiscal Year, and I honestly don't see how they are going to meet that unless the PS3 gets a price reduction.

Since it's been nearly 2 years since the PS3 dropped in price, if Sony did a price cut, I'm betting that it'll be a significant one (at least $100 dollars) and not a small one.

[feejo]

Then they can drop 200$ console would be fine.

[INDIGO_CYCLOPS]

Just in time for the rumored August announcement of the slim/price drop. Welcome home Sony, my best friend and mate.

[jerocarson]

a welcome development

[DelbertGrady]

Poor poor bots!

Once Sony releases the lower priced slim version of PS3 the bots will cry rivers of virgin blood!! The skies will fall and every firstborn crapbot will be crawling to the altar of M$, only to be sacrificed by the great Satan of the west!

Rejoice brethren! Our time will finally arrive!

[Ashriel]

or maybe, they buy the damn thing....

[dawgsfan117]

Why do you and people like you feel that your console is an extension of your soul or something. I own both and imagine this. I buy the exclusives for both and have a good time on each system. I just dont understand these flame wars ppl have. Being a slave to one brand is nothing to "rejoice" about. Fact of the matter is that this just means Sony makes more money of each PS3 sold and so it does nothing for me. Even if it causes a price drop WTF does that matter. I already own the damn system so I gain nothing by others getting it cheaper.

[DelbertGrady]

You speak in tongues, my child! He must be possessed by the ancient demon known as RROD! Begone Satan! BEGONE!!!

[RockmanII7]

If the PS3 goes down to $300, thats what I'm (probably) doing.

[psthreee]

PLEASEEEE DONT START FANBOY WAR

[zagibu]

Too late...

[Dixon]

doubt sony will drop the price this year, theyve lost too much money so far.

[JonnyBigBoss]

Price cuts always... let me emphasize...

ALWAYS ALWAYS ALWAYS happen toward the end of the year. Price cuts do not happen at E3, or anywhere near the end of fiscal year. If there is indeed a price cut to below $399.99, it will be this year or next year between August - October, and most likely comes announced at Tokyo Game Show.

[Coolrah]

This is why they don't need a pricecut....There already making a profit off the ps3....I mean think about it....I'd rather make it cost less to make but still sell at a high pricepoint...instead of lowering the cost because im all honest. There gonna milk it and you know what they need all the moniez they can get. Plus moar money= moar games.

[JonnyBigBoss]

Blu-Ray.

If they can manage to sell more consoles, they manage to push their media, Blu-Ray, a LOT. It is very important that Blu-Ray becomes the norm sometime in the near future, and would be a huge benefit for Sony.

[pixelsword]

seeing that all of the "Sony is doomed" articles justified the high price of the console, they probably could have dropped the price months ago, but decided to recoup their losses from the start.

Did they just use marketing Judo against the negative press they've been receiving?

[Grandreaper9999]

They (Sony) can sit back and wait for the other Blur-Ray manufacturers to push the format while they recover some of their losses. While reducing the PS3's costs, it's easier for them to hang back and drop the price whenever. The format will be pushing on regardless of how successful the PS3 is in the months leading into next year. So they have some of their work cut out for them in that respect.

[-MD-]

So where's the price cut?

[topdawg122]

Im guessing tgs

[DelbertGrady]

It's in your RRODfixme, sadobot!!

[RockmanII7]

So soda, I see you joined the dark side of the force.

[DelbertGrady]

The force? You mean the Cell?

[-MD-]

He's being sarcastic but far too subtle. The PS3 fangirls can't catch that level of subtlety.

[CharlesDCI]

This is the main reason why Sony will pull out of this financial crisis. They already have the content, now all they need is the install base. A cheaper PS3 will do that for them, because we all know that millions of people will buy a $300 PS3. The current price now is to much for someone to spend during a recession.

I also had an idea. What if Sony released the PS3 Slim during Christmas and also had a Gran Turismo 5 Slim bundle? That is off course if the Christmas release date of GT5 is true.

[KingKionic]

What does 70 percent really mean ?

Im thinking it means the ps3 production costs are now 280 . I wonder how Sony did that .

Price cut looks to be coming soon.

[Ninjamonkey]

A price cut must be near then...

But I guess right now for sony just like they said its about recouperating losses.

Also this makes the ps3 slim rumor even less likely.

EDIT: also remember in the ps3 bundles you do get 2 free games, so if sony did a price drop it would probably not be in a bundle.

[KingKionic]

Ok i listen to the whole thing .

I didn't here anyone say 70% , but it probably was a certain term used .

[gamerdude11]

http://webcastingplayer.cor...

Listen to the Q&A portion
Question asked at 1:05:28
It is answered between 3:15 and 4:20

[NaiNaiNai]

And yet the system still costs more then a hooker in NY

[KingKionic]

Actually a hooker cost about....

forget it...

[KILL-ALL-CURE]

Of course a person like you would have to use a hooker as a last resort.

[Vitalogy]

If this is true, sony is being way too greedy by not downgrading ps3 price too.

[JD_Shadow]

And here we go!

[saimcheeda]

see a price cut??...i think they shouldnt cut the price just yet, they should take in some profits then make the move.

[mirroredderorrim]

I will show my feelings on this matter:

http://www.youtube.com/watc...

[keysy420]

that tells you that the price will be 300 soon 240 for the cost samn thats a inprovement. that sony will probably keep the price at 400 for a while probably through xmas. that way they can recoupe some losses

[Rowsdower]

I would raise the price on the PS3

[Captain Tuttle]

They could afford to put the BC chip back in and still make a healthy profit.

[JohnnyAkiba]

My PS3 was the yellow light of death yesterday and is out of warranty about 1 month. Now they want 230€ for a new one.
I am so angry right now.

[Gue1]

LoL =D

[dcbronco]

There is no way they made that much of a cut in the last six months. It was estimated to cost $450 late last year. Now it suddenly drops an additional $200. And the estimates done don't include things like software and royalties. I believe they are under $400, but nowhere near $240.

Retailers don't make much from the sale of games and consoles. It's only around $2 for games and maybe $10 per console. Gamestop sells more than anyone but 67% of their income comes from used games and accessories. Maybe the person who wrote this should look at Sony's financials again. The division with games lost over 400 million. With the PSP and PS2 making a profit, if those cost were right, the division would have seen a profit.

The PS3 is running out of parts to remove to reduce cost. And it has one more die shrink over the next two or three years, which is the biggest way to reduce cost. I think it will be 3 years to get to $240 per unit and at that point it will be stuck there. I also find it funny that so many PS3 fanboys can believe that the PS3 has brought cost down 70%, but Microsoft can't bring them down. I bet most of them still believe the 360 is sold at a loss.

[divideby0]

when you think about my launch PS3 with the PS2 hardware, I can see how the price has dropped since they are comparing to newer PS3s that lack the hardware. also increased chip and diode yields..

[free3sixty]

The PS3 already costs in europe 299euro.. well here in germany i know it for sure. Still ppl dont buy it cause stand alone blu ray player are cheaper now.

[xGrunty]

from Launch I assume.

Glad to hear that the price cut is looking more and more like a reality real soon now.

[IWentBrokeForGaming]

a slim should be inbound.

I just hope that they run cool, I know the innards will be smaller than my 60gig. But my console runs pretty hot at times. I hope the amount of heat the slim will produce, won't prove fatal to the consoles for some people. I knew friends that had a few problems with their PS2 slims back in the day.

Im just proud to know Im 1 of the few people with a non-busted 60gig, I hope I don't jinx it. Cause I've seen quite enough people in here claiming theres have recieved the yellow light of death!

[Guitardr85]

HAHA!!!

Now up for AUCTION!!!

Who wants to buy my mint 60gb PS3 launch model?!?! lol

[dashang]

do i smell a price drop

[vader1231231]

That'll mean a huge price drop... If the price to buy a PS3 drops beneath 300 dollars it's over for Nintendo and MS.

[Yomiro]

Sony knows what is doing they are not stupid.

[kumashii38]

http://phx.corporate-ir.net...

oh, i found the correct page.
We can listen to the conference call.
(in order to do, you have to submit your name and e-mail address)
At around 4:00 in Q&A section, Oneda-san or an another investor
says "70 percent".

but..it might not be Oneda-san's voice.
and sounds like question-intonation.

[Pootangpie]

like the ablity to save data to a flash drive or upgrade with any 3rd party HDD

[PirateThom]

Or, you know, the fact the chipset was reduced to 45nm and the cost of blu-ray diodes took a nose dive?

[TotalPS3Fanboy]

Or the fact that many seperate small componenets are now fused/integrated together into one component, reducing manufactoring cost.

[Dogswithguns]

I still love my fat ones. yes, I have two.

[Crayon]

Anyone see the PS3 Slim being bundled with Uncharted and GT5? Set an install base of new PS3 owners to get eased in and get them to buy more Holiday releases that are cross platform on the PS3 vs the 360.

[HappyTrigger]

Damnit man.... Its been PS3 news throughout the whole day! Can we please get something new!!!! How about games and their sex scenes!?!?! Come on!!!!!!! RAWR!

[SixAmpFuze]

I call Bs. if they are making money how can they post such a deficit

[saint_john_paul_ii]

because those cheap components arent installed yet on the new PS3. so expect a $300 PS3 very soon.

plus their division is now integrated with the Viao, and Walkman division.

[sak500]

PS3 sales reduced by 90%

You droids can hype the POS3 as much as you want on n4g but reality outside is far away.

[b777conehead]

sak 500 you are the pos not the playstation 3

[rjackson1]

Wow that's great for ps3 fans if true.

[spektical]

i dont care for a price drop since i already own one; however, with this manufacturing costs i wouldn't be surprised if sony gave in to a price cut.

[boss_killa]

this is good news.

positive sony news is rare these days. seems like way too many people want sony to fail for some reason.

i really hope sony drops the price and sells ps3 like hotcakes just to shut the stupid haters up.