PlayStation 3 Manufacturing Costs Down 47% Since Launch, Claims iSuppli

Sony's PlayStation 3 hardware costs $391.62 less to manufacture now than when it launched in November 2006, according to estimates from research firm iSuppli.

iSuppli believes that a PlayStation 3 currently costs Sony $448.73 to produce. In mid-2007, it was at $690.23. At launch, it was $840.35 for the $599 60GB unit. It was not specified which PS3 model--the $399 80GB or the $499 160GB unit--was used in its most recent cost analysis, though the firm referenced the $399 price point.

Rumors have circulated that Sony may drop the PlayStation 3's price at the start of its next fiscal year in April 2009, with at least one analyst putting stock in those beliefs.

The 47% reduction in per-unit costs comes from lower component prices, as well as revisions that have reduced the amount of components by an estimated 30%. The firm claims that the first-generation PlayStation 3 had about 4,048 parts, while more modern PlayStation 3s only have around 2,820 components.

"The PS3 may be able to break even in 2009 with further hardware revisions," said iSuppli teardown principal analyst Andrew Rassweiler. The firm noted that its estimate "doesn't include other costs, including software, box contents and royalty expenses."