PS3 Cost Could Be Cut By $100

[HardOCP News]

Sony’s PS3 production cost could be cut by as much as $100 when blue-laser pick-up heads begin to fall in price. According to this report, the PS3 still cost $840 to make while the Xbox 360 Elite costs only $323 to produce.

Sony Shiroishi Semiconductor, a wholly owned subsidiary of Sony, on April 23 announced an expansion of its monthly production capacity of blue-violet laser diodes, a key component of HD-DVD and Blu-ray Disc (BD) PUHs, to 1.7 million diodes as well as the beginning of volume production of 240mW (milliwatts) blue-violet laser diodes in November of 2007. This will greatly increase the supply of blue-laser PUHs at lower prices, the sources indicated, noting the reduction of costs could reach US$100.

 

[SpeedRunner]

This would be nice. Sony needs it too.

 

[HardOCP News]

Even though it wouldn't translate into a price cut for consumers (Sony would no doubt pocket the difference) this is very good news for Sony.

 

[Spazilton]

I think they are also going to cut costs by cutting the PS2 Hardware emulation out of the US consoles like they did in Europe.

 

[Trepidati0n]

Even though it wouldn't translate into a price cut for consumers (Sony would no doubt pocket the difference) this is very good news for Sony.

So they are pocketing less loss. I don't think they are pocketing anything yet.

 

[HardOCP News]

So they are pocketing less loss. I don't think they are pocketing anything yet.

Yes, that is exactly what I mean. Until Sony starts to see substantial cost reductions (65nm, cutting hardware BC support, blue laser PUH, etc. etc.) none of these cost reductions will mean anything to the end user.

 

[Crighton]

well if the numbers that have been thrown around are correct this will mean next to nothing to Sony. Suposedly they have alreay produced millions of PS3s that are sitting in wharehouses now. these units need to be sold before they can even care about future production costs.

I do however like the sound of this. Hopefully it wont be long before they can actually profit from the sales of the PS3. ( I own one and would like to see it continue. )

 

[HAF72]

I don't see why sony needed to drop the price on the ps3, to me I think that the ps3 is priced fairly. Instead of dropping the price of the ps3, why not just bring back those 20gb models?
*Im fairly happy with my ps3 60gb v*

 

[crazjayz]

I don't see why sony needed to drop the price on the ps3, to me I think that the ps3 is priced fairly. Instead of dropping the price of the ps3, why not just bring back those 20gb models?
*Im fairly happy with my ps3 60gb v*

They phased out the 20gig-ers to make room for large 80gig ones, to my knowledge that is.

 

[Crighton]

I don't see why sony needed to drop the price on the ps3, to me I think that the ps3 is priced fairly. Instead of dropping the price of the ps3, why not just bring back those 20gb models?
*Im fairly happy with my ps3 60gb v*

Please reread the article they are not talking about dropping the price of the PS3 they are saying that the price of makeing it will dropp by $100. If you look at the graph they estimate that it costs over $800 to make noe and are claiming that Sony is takeing a loss per unit sold and this could bring them closer to the break even point.

PS if these numbers are correct then I can see why the 20 gigers were droped. The cost difference between a 20 gig drive and a 60 gig drive is minimal and the added cost of the chrome trim and the card reader cannt be more than $20 per unit. so if they can market a unit with more features and take a smaller loss of profit then it makes perfect sence to me