When it comes to manufacturing consoles, companies work economies of scale, which gradually reduce the price of the hundreds of components that go into the consoles, thus reducing the cost to make the console itself. Sony Corp. CEO and Executive Vice President Nobuyuki Oneda recently spoke on the issue during a recent conference call overheard by TVG [thanks VG247].
“The cost reduction since we introduced the PS3 is very substantial and this is on schedule,” said Oneda about the PS3's manufacturing costs. “We don't disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule.”
When pressed about the amount that the costs have been reduced, he responded, “About 70 percent, roughly speaking.”
Reports earlier this year suggested that the price to manufacture the PS3 was down as much as 50 percent since launch. If manufacturing costs are really down as much as 70 percent, we'd say the console is ripe for a price cut.
1 Comments
August 3, 2009
If this figure (70%) is true, that means that a PS3 unit costs about $240 to make (I don't know if I am right, I have heard that the initial cost of a PS3 unit was roughly $800 [$805 to be precise]). David, if that is true, then the PS3 price cut should be right around the corner, hopefully in August, as a couple of analysts have mentioned. I will do my part and pray to the video games deities one more time for a cheaper PS3...(they better listen to me this time. This will be my 3,286 prayer since February.)
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