Feeds

PS3 hardware still losing Sony money, claims analyst

Does my BoM look big in this?

Intelligent flash storage arrays

Sony still makes a loss on every PlayStation 3 it sells, but the console’s latest, slimline redesign has brought the electronics giant closer to that crucial breakeven point, an analysis by market watcher iSuppli has concluded.

The first-generation PS3 was sold at $49.72 (£30.56/€34.17) less than its manufacturing and materials cost, iSuppli said. After a teardown of the new 120GB slimline PS3, iSuppli determined that the machine sells for $37.27 less than its materials and manufacturing cost.

Both figures also come in before the cost of promoting the product and shipping units around the world to sell. It also ignores subsidies on the price of games.

PS3_slimline_BoM_isuppli

The 120GB slimline PS3's Bill of Materials teardown

“The PS3 probably is already at or near the tipping point for profitability," Andrew Rassweiler, Director and Principal Analyst of teardown services for iSuppli, said.

Sony’s total Bill of Materials and testing cost for the 120GB slimline PS3 was found to be $336.27 (£206.70/€231.15). The console retails for around $299 in North America and £245 in the UK.

Exactly how has Sony managed to cut production costs for the new PS3? Mainly by using less expensive semiconductors and fewer components, iSuppli concluded.

These “new” chips have also reduced the slimline PS3’s power demand, iSuppli added, allowing Sony to pair the machine with a 220W power supply in place of the first-generation PS3’s 400W PSU.

The latest model’s most expensive chip is the Nvidia-made Reality Synthesizer graphics chip, which iSuppli estimates to be priced at $45.82. The console’s Cell chip heart costs Sony $37.73 – 19 per cent cheaper than the one in the previous PS3. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
Jaguar Sportbrake: The chicken tikka masala of van-sized posh cars
Indian-owned Jag's latest offering curries favour with us
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Here's your chance to buy an ancient, working APPLE ONE
Warning: Likely to cost a lot even for a Mac
Xiaomi boss snaps back at Jony Ive's iPhone rival 'theft' swipe
I'll have a handset delivered. Judge us after you try us...
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.