PS3 Production Costs Have Dropped By 35 Percent

Do something long enough and you get better at it. Manufacture something long enough, and it gets cheaper. No surprise that Sony has cut the PS3's component cost by 35 percent.

According to research firm iSuppli, the first generation PS3 cost a hefty US$690.23, based on mid-2007 component prices. What about late 2008?

Based on October 2008 component prices, the PLAYSTATION 3 now costs $448.73. Downside: This means that the console is still sold at a loss. Upside: Sony has been able to cut prices and use more advanced components like a 65-nanometer Cell Processor.

At this rate, Sony should be able to break even and hopefully offer a price cut sometime next year. That's good news for consumers looking to pick up a PS3 and Sony looking to pick up more money. Everybody wins!

Sony cuts PlayStation 3 costs by 35 percent [GamePro]