PlayStation 3 Manufacturing Costs Down 47% Since Launch, Claims 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."
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yup. they should have cut the price down to 299 this season. There are bluray players on the market that cost less than the ps3 now, and no big games came out this month on the ps3.
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If they cut the price of the PS3 I'm guessing they'll further cut the price of the BR players. I think because of the PS3's price the stand alone players are able to keep their prices up and stay competitive. but as soon as the PS3 goes down, they'll follow suit.
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That would be an interesting situation. By design, the PS3 and Blu-Ray were supposed to bolster each other by getting BR into gamers' homes, and getting non-gamers to buy a PS3 to get a BR player, but instead BR raised the cost of the PS3 in a painful way, and now we may have the high cost of the PS3 holding back BR adoption by keeping the price of players higher than it needs to be. I guess synergy can cut both ways.
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Keep in mind the economic conditions and it was also the Holiday shopping season. Prices always go down during this time period and most of those cheaper BR players I've noticed were older models which I'm guessing the retailers needed to clear out of their inventory.
The PS3's price in the end helps them keep it higher and your point about upconverting set more of a floor for them. Also, what's not to say they wouldn't lower their prices when BR players drop their prices in reaction to lower BR player prices. If they don't then people would flock to the BR players instead.
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