iSuppli: Sony close to breaking even with PS3 Slim |

The launch of the new line of PlayStation 3 units has been well-received and well-sold, but apparently, Sony is still losing money for every PS3 they sell. This is the report coming from applied market intel, iSuppli. On a more positive note, they are closer to breaking even now than ever before.
“Since the introduction of the PlayStation 3 in late 2006, Sony has subsidized the price of every console sold, a deficit the company has made up for with game sales and royalties,” said iSuppli teardown services director and principal analyst, Andrew Rassweiler.
He goes on:
“However, with each new revision of the game console hardware, Sony has aggressively designed out costs to reach the hardware and manufacturing breakeven point as quickly as possible. The latest version of the PlayStation 3 manages to further reduce the loss, even with the U.S. price of the console having fallen by $100 during the past year.”

As of December 2009, the total manufacturing cost of a 120GB PS3 Slim is US$ 336.27 - and with the US$ 299 price point, Sony still loses US$ 37 per unit sold. Fortunately, prices for the console's parts are expected to "decline significantly in 2010." “In light of these factors, the PlayStation 3 probably is already at or near the tipping point for profitability,” Rassweiler said.
Image courtesy of iSuppli.com
[via iSuppli]
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Comments
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Look at the HD, 120gb at $38... yet Microsoft is getting away with charging $150 for a 120gb drive? That's nuts.
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It's about 112 dollar for the enclosure that MS uses.
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I just bout a 1 TB external USB for $99....
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No, retailers are not making more than 3% profits on a ps3.. sadly for them (But they do tons of money selling the warranty for it, and the controllers, cables, TVs (lol), home cinema, etc. Games do not make good profits for them, but still for the number it can play. And used games make them rich, lol. A retailer pay it's ps3s at least 290$.
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The PS3 HDD is just a laptop HDD (no casing or anything)
Unlike with 360 where it's a laptop HDD with a hard casing.
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I remember they said it was 80% or maybe 70 but it was Sony who said it not some "intel" dood or gal
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PLUS there's taxes involved.
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there is no reason to doubt the above article unless you have any hard evidence or actually worked in the Sony plants who single handedly put together a PS3 for sale worldwide.
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Sony executive an chief financial officer confirmed it. I believe you are over looking on the percentage rather than the actual cost. "According to the report, PS3 manufacturing costs now as low as $240 (£146) per unit, potentially paving the way for a price cut." and many people know that this is article is a false, but I'm not relying on them. But you should know this, this is coming from a third party company, they don't ask Sony how much each part costs, they just make an "estimate".
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it's good to see sony getting closer to break even, but we will never truly know all the costs involved...
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I bet the whole system costs less than $70 to make.
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