Friday, 31 July 2009

Cost Of Making A PS3

Eurogamer have an article up about the decrease in production costs of the PS3 since launch.

The manufacturing costs of PlayStation 3 have dropped by 70 per cent, according to Sony CEO Nobuyuki Oneda.When pressed further on how much the cost has come down Oneda replied, "About 70 per cent, roughly speaking."

Eurogamer say the cost as decreased 50% since launch from around £485 meaning it did cost £243 to make and has since been reduced another 70% meaning it now costs £146 to make each unit. The problem is that how they worked it out is wrong, first off 70% from £243 is wrong if it was indeed 70% it would equal £73 per console which is not possible. I think its meant to be 70% from the original £485 it used to cost to make each console which would make it £145.50, below shows how i worked it out

£485 x 70 / 100 = 339.50

£485 - £339.50 = £145.50 per console

What Sony could now do
£145.50 cost to make
Around £199 when sold to retailers/distributor's
Around £219 when sold to the public

Still £145.50 per console is great, and should mean that we will see the price drop to around £209 or £219 soon, remember retailers have to add something to the cost to make something for themselves to, so £219 looks like a more likely price.

If it did cost £485 to make a PS3 at launch and the 70% decrease is the correct percentage then there's no reason Sony won't be announcing a pretty good price drop soon.I would say £219 will help Sony beat the competition this Christmas.

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