PS3 now 70% cheaper to make
Manufacturing costs are way down on the Sony console.
Speaking during a conference call following its Q1 financial report, Sony Corp CEO and Executive Vice President Nobuyuki Oneda revealed that the cost of manufacturing its PS3 console have dropped by 70 per cent.
“The cost reduction since we introduced the PS3 is very substantial and this is on schedule,” said Oneda. “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.”
He added that the figure is “about 70%, roughly speaking”.
Precise manufacturing costs aren't known, although a figure of $800/£485 has been commonly accepted for the cost at launch. With a 70 per cent reduction applied that figure shrinks down to £146, around half that of the current retail price of the 80GB PS3.
It's widely expected that Sony will announce a PS3 price cut and the PS3 Slim at its Gamescom press conference next month.
Via TVG
Highest Rated Comment
Karlius
That's exactly my point Kamoflage. As strategy is planned months in advance if PS3 cut their price to an astronomically low price will possibly scupper any plans MS and Nintendo can have.
Who knows maybe MS will reduce the price of the 360 to £80 for a Premium and then we are back to square one. But that may allow people to purchase both consoles.
This Christmas period doesn't really have the same AAA titles as last. You have missed L4D2 off that list. But still last yer you had games such as Gears of War 2 a major release. Little Big Planet the game every PS3 fan had been waiting for since console announce. Resistance Fall of man 2, Bio Shock on PS3, COD 5, but what I really meant was the console exclusives. Looking forward to COD MW2 and L4D2 but not as much as Gears 2. There is no real standout game on each console. ODST is out too early so it's left to Forza to be the flagship while fantastic it's not got the following of other franchise. Uncharted 2 Will be fantastic but won't sell consoles like LBP.
As for the Wii are there any games that are set for Christmas or have all been delayed?
If PS3 were being stock piled they would not be at store the fact that there are none at store actually pleads in my case as by not releasing any more consoles then they build up a hype. (However PS3 is plentiful in UK) As soon as the console is reduced they release a portion of consoles. They sell out. Brings up more Hysteria! Release another batch! More hysteria then people that didn't even want a console get into wanting one as it is so sought after. Its a tactic used by console manufacturers for years. Just as happened with the Wii and 360. Unfortunately the PS3 never had this hysteria at launch except in Japan.
PS Not a problem PB. I hope you'll play LBP with me if and when the console gets released at £150 lol.
User Comments
kamoflage@ Karlius
renegade
Karlius
That's exactly my point Kamoflage. As strategy is planned months in advance if PS3 cut their price to an astronomically low price will possibly scupper any plans MS and Nintendo can have.
Who knows maybe MS will reduce the price of the 360 to £80 for a Premium and then we are back to square one. But that may allow people to purchase both consoles.
This Christmas period doesn't really have the same AAA titles as last. You have missed L4D2 off that list. But still last yer you had games such as Gears of War 2 a major release. Little Big Planet the game every PS3 fan had been waiting for since console announce. Resistance Fall of man 2, Bio Shock on PS3, COD 5, but what I really meant was the console exclusives. Looking forward to COD MW2 and L4D2 but not as much as Gears 2. There is no real standout game on each console. ODST is out too early so it's left to Forza to be the flagship while fantastic it's not got the following of other franchise. Uncharted 2 Will be fantastic but won't sell consoles like LBP.
As for the Wii are there any games that are set for Christmas or have all been delayed?
If PS3 were being stock piled they would not be at store the fact that there are none at store actually pleads in my case as by not releasing any more consoles then they build up a hype. (However PS3 is plentiful in UK) As soon as the console is reduced they release a portion of consoles. They sell out. Brings up more Hysteria! Release another batch! More hysteria then people that didn't even want a console get into wanting one as it is so sought after. Its a tactic used by console manufacturers for years. Just as happened with the Wii and 360. Unfortunately the PS3 never had this hysteria at launch except in Japan.
PS Not a problem PB. I hope you'll play LBP with me if and when the console gets released at £150 lol.
pblive
I think with the AAA titles, Karlius isn't saying that there aren't any, there are loads, but Sony don't do a song and dance about it (at least, in the UK) while you see a Nintendo or 360 advert every ad break, even for 3rd party titles.
How they are allowed to advertise 3rd party titles in a way that makes them look like they are on a single format (Microsoft's adverts) is beyond me, but it works and MS aren't fools.
The only thing I disagree with is part of Karlius's earlier post on profit. While I agree that cutting the cost will reap benefits in the long term, I think Sony have to recoup what they can in the short term with the reduced production cost at present and they're still selling plenty of consoles. However, it's a double edged sword as they do need to sell more for the holiday season so they need to sort out a cost drop sometime around September. In a way that does tie in with what he says but I think it's not as black and white as people make out.
Anyway, Karlius isn't a fanboy, it's just his points don't always come across as intended because people take his posts the wrong way! (hope you don't mind me saying that Karlius :D)
kamoflage
I also think that it is unlikely that Sony has a huge stockpile of old PS3s to get rid of. All the main retailers around here have 'out of stock' signs next to the PS3 stands which lends more weight to the speculation that PS3 Slim is coming in plenty of time for Christmas. If true, Sony would have had to cease current model production and re-tool its production and assembly lines. Typically this process takes weeks (possibly a couple of months) resulting in the lack of supply that is currently being experienced by retailers. It is probable that the introduction of the Slim will be accompanied by a decent price cut and undoubtedly a family focussed Christmas bundle. Slim and Uncharted 2 anybody?? However, Sir Howard Stringer's dismissive comments about losing money on every unit makes me think that perhaps Sony will want to retain some of the production cost reductions for themselves.
http://au.gamespot.com/news/6214569....dlines;title;4
"Just in time for the Christmas Lead Up and giving MS and Nintendo very little time to respond."
Karlius, I think its a little naive of you to think that Nintendo and MS have not already started to plan their own price cuts and/or bundles for Christmas. Its a make or break time of year for console sales and they plan months in advance.
Karlius
:)
I by no means think that that the PS3 sales are weak just not what they should be. In fact their kind of lacking in terms of what a giant like Sony could achieve. A major annoyance of mine is the lack of advertising for their AAA titles which left an early abysmal attach rate for games like LBP which deserved so much more! Yet rubbish like Haze got a massive push even holding a launch centre on this very site!
El-Dev
Though the games figures do include games from PSN, which may or may not count depending your views.
I had a feeling you worked in IT.
Karlius
When you compare the sales of that of the Wii to PS3 or even the 360 to PS3 they are slightly gulfed.
One thing I didn't say is a lot of the guys still play PS2.
El-Dev
Lol @ Karlius' strawpoll in work, must be a popular guy.
Karlius
StrikeForce
I can't see the price drop to £150. More like £210 or £220 at least for the console on its own.
Karlius
Only stumbling point for me has always been the high price point of the PS3 it's not accessable enough. I work with 100 guys in an office around 5 own a PS3 of those 5, 2 also own a 360, 1 owns all 3 but still lives with Mammy lol. 0f the 100, 28 in total own a 360 yet there were only a few of us that bought the console day one with most opting to wait for a decent price cut. I'd say at least half have bought the 360 since the last cut. I also know that there are a lot of guys here me included waiting on a major PS3 price drop to aquire one. It's not fanboyism just at the moment I can't justify a £300 spend as it does not offer a whole lot more than what the 360 does. If it was £150-£180 then I would be very tempted in deed!
I also envisage if that happens then the PS3 will make the 10 million deficit it has on the 360 up in a month. Demand will be that high. Meaning it will finally be on a level playing field for developers and will finally get some amazing 3rd party exclusive development. Can see the PS3 eating into Wii Lead as I think this will also be a way for lots of people to get into Blu Ray. If your in a shop and are offered a Blu Ray player for £90-£120 and the PS3 which offers a lot more is there at £150 the platform will sky rocket!
StrikeForce
Sony should do a price cut but however.... If the current figures are showing that the manufacturing costs have gone down by 70% and there not selling as much as the 360 or Wii. The PS3 must be doing something right besides all these pity arguments which this forum accumlates over the PS3 affairs. If your happy that you have one then good, if you haven't why argue what you haven't got?
Karlius
To quote dragons den to own 60% of something is better than to own 100% of nothing!
El-Dev
I understand they are sold at a loss at the start of their lifespan, but now the PS3 is in to it's 3 year. I can't see Sony wanting to make a loss with every console sold especially when other parts of the company aren't doin to well in the current climate.