Feeds

PS3 hardware still losing Sony money, claims analyst

Does my BoM look big in this?

Choosing a cloud hosting partner with confidence

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. ®

Remote control for virtualized desktops

More from The Register

next story
NOKIA - Not FINNished yet! BEHOLD the somewhat DULL MYSTERY DEVICE!
N1 mini-'slab to plop into crowded pond next year
The Nokia ENIGMA THING and its SECRET, TERRIBLE purpose
Finnish firm coyly exposes mystery product – and WE NO what it is
Heyyy! NICE e-bracelet you've got there ... SHAME if someone were to SUBPOENA it
Court pops open cans of worms and whup-ass in Fitbit case
SLURP! Flick your TONGUE around our LOLLIPOP – Google
Android 5 is coming – IF you're lucky enough to have the right gadget
Nokia's N1 fondleslab's HIDDEN BRILLIANCE: The 'Z Launcher'
Sugarcoating Android's Lollipop makes tab easier to swallow
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
prev story

Whitepapers

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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.