Report: PS4 costs $381 to build

By Andrew Yoon, Nov 19, 2013 11:30am PST

With PlayStation 4 consoles out in the wild, it's time they got torn down. The folks at IHS iSuppli have been tearing down systems for years, giving estimated manufacturing costs. According to a new report, the cost of making a PS4 is $381, just $18 less than its retail price.

As AllThingsD points out, "Sony is taking a very small gross margin or even a possible loss on the console." However, the possible loss pales in comparison to PS3. Although that console sold for $599, it cost over $800 to make. Expensive Blu-ray technology at the time was to blame.

According to the teardown, the AMD chip inside PS4 is its most expensive component, costing about $100 to build, while memory adds about $88. The highly-regarded DualShock 4 costs about $18 to make.

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