Over time, parts get cheaper and companies get better at the manufacturing process. Case in point: the PLAYSTATION 3.
In an investor call, Sony corporate CEO Nobuyuki Oneda revealed that PS3 manufacturing costs have dropped 70 percent.
"We don't disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule," said the exec.
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When pushed, Oneda said the overall cost of making a PS3 was down "about 70 percent, roughly speaking". At launch, the 60GB PS3 model sold for US$599, and that was at a loss.
Sony Corporation Q1 FY09 [Sony via TVG via VG247]