Source:
cnet
The Digital Home Blog
Why Sony needs to (but can't) drop the price of the PS3
By Don Reisinger
December 30, 2008
In a report that could send shock waves through the video game industry, market research firm iSuppli has detailed the real cost and new savings found in Sony's second-generation Playstation 3.
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Altogether, Sony's second-generation PS3 features a 35 percent total cost reduction from the first-generation model. In dollars and cents, today's PS3 costs Sony about $448.73 to produce, compared to the old model's $690.23 price tag. That said, the lower cost doesn't include software, box contents, and royalty expenses.
Realizing that, and considering the PS3's current price tag of $399, iSuppli has found that Sony is still losing money with each sale of its console. But Andrew Rassweiler, director and principal analyst at iSuppli, believes Sony may be able to break even in 2009.