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PlayStation 3 Now Costs Sony $400 to Manufacture

EL1TE   on 15 January 2008 - 11:35 · 22 comments & 16552 views

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Ever since the launch of the PlayStation 3, those who took exception to the console’s relatively high price criticized Sony’s decision to include an expensive Blu-ray Disc drive. While developers such David Jaffe (God of War, Twisted Metal) wanted to do without the drive, Sony itself has said that the decision to include Blu-ray Disc hardware is the smartest decision it has ever made. Now with the Blu-ray Disc format looking stronger than ever with the support of Warner Bros., the PlayStation 3 appears very well positioned as multimedia machine that appeals to more than just the gaming market.

Along with consumers, Sony felt the pain of its high console price at the time of the PlayStation 3 launch in November 2006. iSuppli estimated that the initial cost of manufacture for the console was $840.35 for the 60GB model. Since then, however, Sony has managed to close the gap considerably on its loss on every unit sold. Nikko Citigroup’s Kota Ezawa, quoted by BusinessWeek, says that each PS3 costs Sony around $400 to manufacture. Ezawa estimates that SCEI will lose $1.4 billion this fiscal year, following last year's $2.1 billion loss. The falling price of PlayStation 3 components is thanks to the increase in yield and supply of blue-violet laser diodes used in the high-definition optical drive in the console. Another large help in reducing costs was the Cell Broadband Engine chip’s shrink to 65nm. SCEI chief Kazuo Hirai at CES told the media that the PlayStation division of the company aims to be profitable starting next fiscal year.

News source: DailyTech

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#1 Wiggz on 15 Jan 2008 - 12:04
This isn't a "good" thing for me. Sony are doing a very good job of putting a spin on the fact it was beaten in the next gen wars by an ageing 360, and a cheap and cheerful, Wii. PS3 is and will be good as a Blu-Ray player, but how many people are going to go out there (when Blu ray becomes standard) and pay the money for it when they will no doubt be able to get a stand alone player for less (slightly). Plus they will still probably have a next gen console which is on a par with PS3.....

PS3 is like a Sega Saturn...great console...but stupidly marketed and priced to begin with.

I seriously doubt the market share for PS3 will grow considerably after the nes of most people now adopting Blue Ray...in fact I think it might well shrink as Blu Ray players become more prominent.

#2 lothodon on 15 Jan 2008 - 13:31
i personally, now that blu ray is a more dominant format, am planning my ps3 purchase. i've had my 360 for a while now and am glad i didn't get the ps3 when it was slightly overpriced at release.

hope the purchase doesn't end up a regret like my latest "gaming" pc that doesn't get any gaming use anymore.
(2 replies) #3 Galley on 15 Jan 2008 - 14:28
The PS3 will soon overtake the 360, and eventually the Wii. I guarantee it!
#3.1 EduardValencia on 15 Jan 2008 - 15:55
eree i don't think so
#3.2 RangerLG on 15 Jan 2008 - 18:07
Define "soon" because as of right now, the PS3 is 9,598,373 units sold behind the Wii.
#4 Skwerl on 15 Jan 2008 - 15:07
I bought my PS3 a few months ago to just be a Blu-Ray player, but much to my surprise, I actually play games on it all the time. I think Sony's doing a lot of things right, and I do believe the PS3 will end up doing very well. My Wii, unfortunately, sits there collecting dust. I was really into it when I first got it, but once you get through Zelda and Mario Galaxy (which I actually wasn't so crazy about), there's not much else there. I am hoping Nintendo will get some better titles out there for the Wii. You can only wave a stick around like an idiot in so many different ways before it gets old.
(6 replies) #5 The Walker on 15 Jan 2008 - 16:19
The only reason the PS3 now costs $400 rather than $800 is becasue of the reduced specs and the fact that they no longer have the Emotion chip, which means no backwards compatibility.

... and without backwards compatibility, the PS3 is worthless. I was going to buy, but because of this there is no point, the huge PS2 (and to some degree PS1) back catalogue features some really stunning games, and we're talking actual gameplay here, not a piece of boring sh*t that's all nice and shiny (*PS3 games, cough*) and without the ability to play them on this console, there is no reason to buy new.

PS2 gameplay knocks PS3 out of the ball park at the moment, and that won't change for a while until devs get to grips with the PS3 coding.. this is amply illustrated by a quite frankly mediocre catalogue so far.
#5.1 n_K on 15 Jan 2008 - 18:25
+1
And I wounldn't be suprised if them losing money is just marketing hype, if something makes you lose THAT much money, no company or CEO in there right mind would continue to manufacture and sell the product as such a high loss, it would be the most stupid thing to do (OK lets go buy 40,000 orange sim cards with £10 credit on for a total of £400,000 and sell them for £5 each making a total loss of £200,000...)
#5.2 Kushan on 15 Jan 2008 - 19:30
Quote - (The Walker said @ #5)
The only reason the PS3 now costs $400 rather than $800 is becasue of the reduced specs and the fact that they no longer have the Emotion chip, which means no backwards compatibility.

... and without backwards compatibility, the PS3 is worthless. I was going to buy, but because of this there is no point, the huge PS2 (and to some degree PS1) back catalogue features some really stunning games, and we're talking actual gameplay here, not a piece of boring sh*t that's all nice and shiny (*PS3 games, cough*) and without the ability to play them on this console, there is no reason to buy new.

PS2 gameplay knocks PS3 out of the ball park at the moment, and that won't change for a while until devs get to grips with the PS3 coding.. this is amply illustrated by a quite frankly mediocre catalogue so far.


Couple of things wrong with your post, mate

1) The cost of the emotion engine and the smaller hard drive probably only account for half of the price difference at the very most (Here's a hint: How much does a FULL PS2 cost and what's the difference between a 40Gb and 60Gb external hard drive? both of those combined barely hit $100).
The price difference is due mainly to the smaller CELL and cheaper blu-ray components

2) PS1 games play fine on the PS3, they're completely software emulated so they still work (since they don't need additional hardware to run)

Oh and this is coming from someone who owns and loves his 360 =)
#5.3 Kushan on 15 Jan 2008 - 19:33
I can't seem to be able to edit my post, so I'll just put it here -

The PS3 never actually had the emotion engine inside it, that was all done in software, it was the graphics processor that was included with the original 60Gb units.
#5.4 The Walker on 15 Jan 2008 - 19:41
Quote - (Kushan said @ #5.3)
I can't seem to be able to edit my post, so I'll just put it here -

The PS3 never actually had the emotion engine inside it, that was all done in software, it was the graphics processor that was included with the original 60Gb units.


You are wrong.

The 60GB version had the Emotion chip, the 80GB version had a software emulator (which is only partially compatible with existing PS2 games) and the 40GB and new version have nothing at all.

#5.5 rpger81 on 15 Jan 2008 - 21:16
Quote - (The Walker said @ #5)
The only reason the PS3 now costs $400 rather than $800 is becasue of the reduced specs and the fact that they no longer have the Emotion chip, which means no backwards compatibility.

... and without backwards compatibility, the PS3 is worthless. I was going to buy, but because of this there is no point, the huge PS2 (and to some degree PS1) back catalogue features some really stunning games, and we're talking actual gameplay here, not a piece of boring sh*t that's all nice and shiny (*PS3 games, cough*) and without the ability to play them on this console, there is no reason to buy new.

PS2 gameplay knocks PS3 out of the ball park at the moment, and that won't change for a while until devs get to grips with the PS3 coding.. this is amply illustrated by a quite frankly mediocre catalogue so far.


lol that gave me a good chuckle. "PS3 is worthless"? C'mon man go buy a freaking PS2 at ebay for a steal if you have to. For all the money you'd be saving not buying a PS3 with BC you can buy plenty of PS2's and PS1's.

I swear todays generations have been spoiled. We never had BC back when I was a kid... I couldn't play nes games on my snes (without additional hardware) so why should you? PS3 plays PS3 games... oh noes!

Last edited by rpger81 on 15 Jan 2008 - 21:18
#5.6 Kushan on 16 Jan 2008 - 11:30
Quote - (The Walker said @ #5.4)
Quote - (Kushan said @ #5.3)
I can't seem to be able to edit my post, so I'll just put it here -

The PS3 never actually had the emotion engine inside it, that was all done in software, it was the graphics processor that was included with the original 60Gb units.


You are wrong.

The 60GB version had the Emotion chip, the 80GB version had a software emulator (which is only partially compatible with existing PS2 games) and the 40GB and new version have nothing at all.


Wrong. The 60Gb version and the 80Gb version both contained the graphics processor. The 40Gb model did not, hence why it's completely incompatible.
However, it should be noted that when I said the original 60Gb models didn't contain the emotion engine, I was referring to the UK's (where I live) 60gb models.
(3 replies) #6 Juicyyy on 15 Jan 2008 - 21:32
Quote -
I swear todays generations have been spoiled. We never had BC back when I was a kid... I couldn't play nes games on my snes (without additional hardware) so why should you? PS3 plays PS3 games... oh noes!


Well maybe because the tech is available to do so? Just because YOU couldn't doesn't me we can't.
#6.1 rpger81 on 15 Jan 2008 - 22:16
Quote - (Juicyyy said @ #6)
Quote -
I swear todays generations have been spoiled. We never had BC back when I was a kid... I couldn't play nes games on my snes (without additional hardware) so why should you? PS3 plays PS3 games... oh noes!


Well maybe because the tech is available to do so? Just because YOU couldn't doesn't me we can't.


Thanks for proving my point. So the technology is there... but people like you take it for granted. Understand the BC in the PS3 is a privilege not a requirement. A gain, not a loss. Someone chooses to not buy a PS3 because it has no BC? Give me a break.
#6.2 The Walker on 15 Jan 2008 - 23:21
Quote - (rpger81 said @ #6.1)
Quote - (Juicyyy said @ #6)
Quote -
I swear todays generations have been spoiled. We never had BC back when I was a kid... I couldn't play nes games on my snes (without additional hardware) so why should you? PS3 plays PS3 games... oh noes!


Well maybe because the tech is available to do so? Just because YOU couldn't doesn't me we can't.


Thanks for proving my point. So the technology is there... but people like you take it for granted. Understand the BC in the PS3 is a privilege not a requirement. A gain, not a loss. Someone chooses to not buy a PS3 because it has no BC? Give me a break.


Privilege?.. ah.. is that what it is?

It's a priviledge to be told to get rid of an entire back catalogue of games in favour of inferior one just because they are new and shiney (and don't actually have half of the gameplay values as their predecessors), not to mention that fact of reneging on industry press releases saying that backwards compatibility was a company axiom.. yeah, right.

You talk as if they are doing us a favour, as opposed to providing a service which not only would we be paying a premium on, but gets us as a customer in the first place... seriously you should start thinking about what you post, instead of turning off and letting your fingers move.... btw your "todays generations" crack (which should have been "today's generation" btw)... I'm older that you are....

... Your baseless assumption, and rather anti-consumer/choice point of view makes your comments just seem silly.



Last edited by The Walker on 15 Jan 2008 - 23:26
#6.3 rpger81 on 16 Jan 2008 - 00:37
Quote - (The Walker said @ #6.2)
Quote - (rpger81 said @ #6.1)
Quote - (Juicyyy said @ #6)
Quote -
I swear todays generations have been spoiled. We never had BC back when I was a kid... I couldn't play nes games on my snes (without additional hardware) so why should you? PS3 plays PS3 games... oh noes!


Well maybe because the tech is available to do so? Just because YOU couldn't doesn't me we can't.


Thanks for proving my point. So the technology is there... but people like you take it for granted. Understand the BC in the PS3 is a privilege not a requirement. A gain, not a loss. Someone chooses to not buy a PS3 because it has no BC? Give me a break.


Privilege?.. ah.. is that what it is?

It's a priviledge to be told to get rid of an entire back catalogue of games in favour of inferior one just because they are new and shiney (and don't actually have half of the gameplay values as their predecessors), not to mention that fact of reneging on industry press releases saying that backwards compatibility was a company axiom.. yeah, right.

You talk as if they are doing us a favour, as opposed to providing a service which not only would we be paying a premium on, but gets us as a customer in the first place... seriously you should start thinking about what you post, instead of turning off and letting your fingers move.... btw your "todays generations" crack (which should have been "today's generation" btw)... I'm older that you are....

... Your baseless assumption, and rather anti-consumer/choice point of view makes your comments just seem silly.


Wow grammar Nazi. Maybe you should heed your own advice and check your own post ("shiney"? "priviledge"? "I'm older that you are"?). LOL the irony.

Those games are meant to be played on the system they were made for. Any other compatibility is a benefit. Don't want to buy a PS3? Good for you. Have legitimate reasons not to rather than blaming the dumbest of things.

PS: You have no idea how old I am, don't make assumptions based on the fact I mentioned my favorite console system. Grow up.

Last edited by rpger81 on 16 Jan 2008 - 00:40
#7 JonathanVP on 15 Jan 2008 - 23:33
damn! Good thing I bought my PS3 !!!
#8 MGS4-SS on 16 Jan 2008 - 02:05
All there is now for Sony is to start earning money from each PS3 sold.
#9 Shadrack on 16 Jan 2008 - 05:26
Sony gambled with including Blu-ray and ended up winning the bet in the end. At the moment the 360 has the better game selection in my humble opinion. Honestly, I wish I would have waited for the PS3 rather than adopting the ever failing POS 360. Just waiting for my current 360 to die and refusing to buy anymore games on it at the moment. Its still fun. But the failure rates are just stupid high. Out of 7 people I know that own a 360 in RL, only 1 hasn't had their 360 die. What a POS.

Last edited by Shadrack on 16 Jan 2008 - 05:27
#10 Orlando Rays on 16 Jan 2008 - 12:02
The only reason Blu-Ray is winning is because PS3 uses the format. Why pay $500 for a Blu-Ray player when you can pay $400 for a Blu-Ray player that also surfs the internet and plays video games in 1080p?

I'm getting an Apple TV 2 and an Xbox 360 myself.
#11 m-head on 16 Jan 2008 - 15:43
None of the three consoles are giving me enough reason to buy them at the moment.

The PS3 was my favourite contender before the consoles were released, but I said I would wait until the consoles were cheaper and more established before I made a decision. The PS3 is still my favourite on the 3, but here's how it is for me:

The launch PS3 was the best model, but expensive. The newer they get, the cheaper they get. We don't even get the software emulation anymore in the UK, as we don't have an 80GB model. People say "keep your PS2", and I said "I want upscaling, otherwise I wouldn't care".

The 360 has it's ow problems, like a complete set up for me (wireless, controller charge kit) would cost more than a PS3, and plus there's the whole RROD thing that's oh so encouraging.

The Wii is okay when I play on my mate's one, but owning one would be a bad idea as aside from Zelda, Mario Galaxy, and the yet to be released Super Smash Bros Brawl, the category for serious games is looking a bit empty.

Might as well get a gaming PC...

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