Feeds

Sony PS3 'costs at least $805-840' to make

Analyst prices up console's production

Build a business case: developing custom apps

Sony's PlayStation 3 games console costs the consumer electronics giant at least $840 to make, $241 more than the $599 asking price, market watcher iSuppli has claimed. Its figure is its estimate for the cost of the materials and manufacturing, but Sony's R&D and marketing expenditure will surely push the console's unit cost much higher.

Like a number of reporters, iSuppli disassembled both the 20GB PS3 and the 60GB model. The cost of making the 20GB console comes to just under $806, iSuppli said, almost $307 more than the $499 asking price. Both iSuppli figures do not include the console's controller, cables and packaging, the company said.

Compare the numbers to iSuppli's estimate of how much it costs Microsoft to make a hard drive-fitted Xbox 360: $323, $76 less than the $399 retail price. Don't forget that in both vendors' cases the retail price is more than the company itself will receive, inflating Sony's loss and reducing Microsoft's profit margin. And Microsoft has had a year to drive up volumes and lower production costs.

Back to the PS3, the most expensive component appears to be not the Cell processor but Nvidia's Reality Synthesiser - as Sony calls it - graphics chip, at $129. The Cell chip, on the other hand, costs $89, iSuppli estimated. The Blu-ray Disc drive costs $125, it said.

Fitting the PS3 with an EE+GS chip to ensure backward compatibility with old PS2 and PSOne games - well, it's almost compatible - costs Sony $27 per console, iSuppli reckons. ®

Build a business case: developing custom apps

More from The Register

next story
The agony and ecstasy of SteamOS: WHERE ARE MY GAMES?
And yes it does need a fat HDD (or SSD, it's cool with either)
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Apple to build WORLD'S BIGGEST iStore in Dubai
It's not the size of your shiny-shiny...
Just in case? Unverified 'supersize me' iPhone 6 pics in sneak leak peek
Is bigger necessarily better for the fruity firm's flagship phone?
Steve Jobs had BETTER BALLS than Atari, says Apple mouse designer
Xerox? Pff, not even in the same league as His Jobsiness
Apple analyst: fruity firm set to shift 75 million iPhones
We'll have some of whatever he's having please
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.