Printed from http://www.electronista.com

PS3 costs broken down, described as "masterpiece"

updated 11:50 am EST, Thu November 16, 2006

PS3 Cost Breakdown

Sony's oft-maligned PlayStation 3, which is due to launch tomorrow, is an "engineering masterpiece" that provides much more performance for the money than Microsoft's Xbox 360, according to a component pricing breakdown performed by market researchers iSuppli. The report reveals that the price of the PS3 is dramatically lower than the actual assembly costs, the entry-level 20GB model costing Sony an estimated $806 despite its $499 official price. The difference results in a $307 loss to Sony for every system sold that dramatically outweighs the price difference of the Xbox 360 Premium model, which loses only $76 per console. Click through for further information about the breakdown.

Blu-Ray is understandably a major contributor to the overall cost, iSuppli writes, adding $125 by itself in contrast to the $20 DVD drive of the Xbox 360. The NVIDIA-made RSX graphics chip is technically the largest factor and adds $129 to the assembly pricing. While such numbers are beneficial to the buyers themselves, they underscore both Sony's determination to promote Blu-Ray and the difficulty the company faces in turning a profit, as each console sale will need to be followed by multiple game and accessory sales for Sony to recoup its investment.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As 802.11ac networking begins to makes its way into more and more devices, you may find yourself considering an upgrade for your home ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News