iSuppli Tears Down New PS3 and Finds it Cheaper to Build

It's no secret that the PS3 console itself is a money loser for Sony. When the game console first launched back in 2006 research firm iSuppli tallied the cost of parts inside the machine at over $840 for the version selling for $599 at the time.

The firm has picked a new PS3 off the shelf and gutted it again to see if Sony is still losing as much on each console it builds. Today's PS3 costs much less to build at about $448.73 for the model selling for $399. Sony is now losing only about $50 per PS3 it sells.

Keys to the significantly lower production cost are smaller nanometer scale cell processor and graphics hardware that have moved from the 90nm original parts to 65nm parts today. The Sony Cell chip is estimated to be cheaper at $46 today compared to $89 in 2006. Sony may actually see a profitable PS3 in the not too distant future.

Via BusinessWeek

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