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zippyjuan
11-20-2006, 10:07 AM
http://www.xbitlabs.com/news/multimedia/display/20061117130000.html

Sony PlayStation 3 Costs $840 to Manufacture After All.
PlayStation 3 – An Engineering Masterpiece, Analysts Say

Category: Multimedia

by Anton Shilov

[ 11/17/2006 | 01:01 PM ]


Sony PlayStation 3 game console is finally released and analysts say that the game console offers performance of a supercomputer, however, dissection of the console reveals that Sony Computer Entertainment Inc. loses over $300 on each one and the machine is still very expensive to build.

“With the PlayStation 3, you are getting the performance of a supercomputer at the price of an entry-level PC,” said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli research company.

The analyst firm claims that its preliminary estimates the combined materials and manufacturing costs of the PlayStation 3 is $805.85 for the model equipped with a 20GB hard disk drive (HDD), and $840.35 for the 60GB HDD version. The estimates do not include additional costs for elements including the controller, cables, packaging, freight as well as profit for resellers, such as BestBuy..

iSuppli believes that Sony is encouraging customers to acquire more expensive 60GB models as Sony is taking $306.85 loss on every 20GB PlayStation 3 sold, whereas the loss on every 60GB version totals $241.35, according to teardown analysis.

http://www.xbitlabs.com/images/news/2006-11/ps3_costs_isupply.gif

The most expensive component of the PlayStation 3 is claimed to be Nvidia’s RSX graphics processor, which, according to iSupply, costs $129. However, given that the RSX graphics sub-system integrates a graphics processor and four memory chips, the cost of the GPU itself should be much lower. Blu-ray optical drive costs $125, being the second most expensive component, according to iSuppli’s teardown analysis. The Cell processor, which was expected to cost hundreds of dollars, actually costs Sony about $89, the research firm believes.

It is ordinary for game console makers to lose money on hardware, and make up for the loss via video game-title sales. Still, the size of Sony’s loss per unit is remarkable, even for the video-game console business, iSuppli says.

“The reason why the PlayStation 3 is so costly to produce is because it has incredible processing power,” Rassweiler said. “If someone had shown me the PlayStation 3 motherboard from afar without telling me what it was, I would have assumed it was for a network switch or an enterprise server.”

InfiniteNothing
11-20-2006, 10:27 AM
Maybe Sony should sell them on ebay ;)

MrGreg
11-20-2006, 11:14 AM
:stupid:
I always wonder why with super high demand items like this and certain concert tickets, companies don't up the prices to what scalpers are getting. At least for the first couple weeks when supply is low. They should be very strait forward about it:

First week: $1200
Second week: $1000
Third week: $800
After that: msrp

Maybe they think it will upset customers more than the extra revenue is worth?

bachviet
11-20-2006, 11:15 AM
Maybe Sony should sell them on ebay ;)
They would lose the same amount with eBay & paypal charges anyway. :P

Thesifer
11-20-2006, 11:29 AM
I would cite my source, but I can't remember where I read this. I'll try and find it later today :)


Turns out Sony will be losing change to the tune of $241.35 for every "premium" (WiFi and 60GB HDD) console, and a whoppin' $306.85 for the bargain-basement 20 gigger. In comparison, Microsoft loses $75.70 per 360 it sells, while Nintendo is laughing all the way to the bank with a profit per Wii sold.

Napoleon54
11-20-2006, 04:32 PM
I'm guessing the income from selling games must more than make up for the initial hit they take for the console?

Thesifer
11-20-2006, 06:22 PM
I'm guessing the income from selling games must more than make up for the initial hit they take for the console?

Including their gamble of getting Blu-Ray drives out there on the market.

johnnymk
11-21-2006, 05:26 AM
I originally thought that $600 was ridiculous for a gaming machine, but after reading this, it's a bargain.

Thesifer
11-21-2006, 07:22 AM
I originally thought that $600 was ridiculous for a gaming machine, but after reading this, it's a bargain.


Who do you think wants the information out there? :)

Houdini
11-21-2006, 03:56 PM
Who do you think wants the information out there? :)

Hadn't thought of that. :) Surely Sony gets better prices than those quoted on the components when buying in such bulk. :shrug:

Then again, I don't even own a gaming machine, except for my computer. So it is tempting. Just wish I had an HDTV to take full advantage of it.

InfiniteNothing
11-21-2006, 04:05 PM
You can probably hook up the PS3 to your computer monitor. It just won't do bluray. Also, those are almost definitely super bulk prices.

Houdini
11-21-2006, 04:11 PM
You can probably hook up the PS3 to your computer monitor. It just won't do bluray. Also, those are almost definitely super bulk prices.

Yeah, I just need a big monitor. Mine is beautiful, but it is connected to my computer (notebook.) But it is a 15.4" Ultrasharp 1680X1050. I've been thinking about getting a bigger monitor for when I'm at home anyway, but I still need a way to jump online wirelessly (see my technical support post.)

I guess at that price the PS3 really is a bargain then. Wow.

Thesifer
11-21-2006, 08:55 PM
Yeah, I just need a big monitor. Mine is beautiful, but it is connected to my computer (notebook.) But it is a 15.4" Ultrasharp 1680X1050. I've been thinking about getting a bigger monitor for when I'm at home anyway, but I still need a way to jump online wirelessly (see my technical support post.)

I guess at that price the PS3 really is a bargain then. Wow.


It is. Except for the games aren't that great :) The Wii is much more fun to play. I haven't even played it at home and I love if. If I can find someone that has them in stock I'm getting one.
I tried the NBA Game for PS3, it's annoying. And the guys look like a bunch of Ken Dolls running around even on the Sony HDTV That they have for their Displays at Best Buy.

DaFunkyUnit
12-07-2006, 02:11 PM
Un-effing-belieavable!

After so much time and energy spent trying to get a Wii, I'm still stunned on how EASY it was to get a PS3.

I just waltzed into the Best Buy by my work (Signal Hill), the floor manager immediately asked "Are you looking for PS3s?" before I could say anything he directed me to a "line", by line, i mean, 2 people waiting. After no waiting, I ended up spending over $600 and got me self a PS3. Total time spent at Best Buy: less than 10 minutes.

these things are indeed available. if you're lucky.

MrGreg
12-07-2006, 02:56 PM
If you don't really want it you could probably sell it and make enough to get a Wii for free.

Thesifer
12-07-2006, 02:57 PM
From what I hear, you don't even need to be that lucky. I'm not sure if it's lack of interest (Although with the Price Tag, the Bad Reviews, and the Wii. Also the 360 being EASILY available with tested games..) I would see that being the case. I'm definitely not interested. Maybe when they are $250. And Yes I know they are already taking it in the shorts with the price as it is now.

And that's Great. I Like to see Sony take it in the Shorts.

YellowCoffee
12-07-2006, 03:12 PM
From what I hear, you don't even need to be that lucky. I'm not sure if it's lack of interest (Although with the Price Tag, the Bad Reviews, and the Wii. Also the 360 being EASILY available with tested games..) I would see that being the case. I'm definitely not interested. Maybe when they are $250. And Yes I know they are already taking it in the shorts with the price as it is now.

And that's Great. I Like to see Sony take it in the Shorts.

Gotta agree here. I honestly don't see much left with the PS3 after all the hype is dissolved. I'd much rather get a 360.