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PlayStation 3 production costs drop substantiallyDVDBack23 @ Jan 16, 2008 02:29 | 26 comments
It was not only consumers that felt the squeeze however. The industry group iSuppli estimated last year that the initial cost to manufacture the 60GB unit was $840.35 USD, way higher than even Sony was charging for the console meaning the company was losing hundreds of dollars per console.
A year later however, Sony has managed to close the gap a substantial amount although they are still losing money. BusinessWeek reported this week that the PS3 now costs around $400 USD to manufacture and that Sony will only lose $1.4 billion USD in its gaming division for 2007 compared to $2.1 billion USD for 2006.
Production cost drops have been attributed to a few new advances in technology as well as higher supply. Firstly, the Cell Broadband Engine chip was shrunk to 65nm. The blue-violet laser diodes used for the Blu-ray drive have also seen a huge increase in yield and supply. Sony also removed the backwards compatibility engine for PS2 titles from its 40GB unit, dropping production costs even further.
Sony Entertainment boss Kazuo Hirai explained at CES that the gaming division hopes to be profitable by the next fiscal year. |
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Comment by: vinny13 (Jan 16, 2008 04:20) Great :)
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Comment by: rainofire (Jan 16, 2008 08:35) @Mestari
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Comment by: nobrainer (Jan 16, 2008 09:41) Sony are using Foxconn to manufacture their PS3's now which is why they have cut costs.
Originally posted by link: foxconn was found by the Mail on Sunday to be using sweatshop type slave labour in their factories, they were employing mainly woman from far away villages so they had no choice but to stay in the large squalid dormitories forced to work 15+ hours a day, were only being paid $50 per month and half of that went to foxconn for their bed and board.
Originally posted by link: Before all the complete morons state that this company has given vital jobs to the area, and the ppl earn more money they could else where, grow up and read some feckin globalist economics literature and realise that capitalism is destroying their way of lives helped by the WTO and central banks so westerners can enjoy goods for cheaper prices!
Quote: Noam Chomsky: Is Capitalism Making Life Better? Video
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Comment by: spydah (Jan 16, 2008 17:35) Quote:
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Comment by: c1c (Jan 16, 2008 18:17) Is it true that people are using PS3 as a computer running linux? |
Comment by: OhCrap (Jan 16, 2008 19:57) Quoted from Wikipedia.
Quote: Quote: |
Comment by: ZippyDSM (Jan 16, 2008 21:19) great now that the PS3 is around 400 put the Gdamn BWC hardware in it and a 4X BD drive in it and I will but it for 400.....
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Comment by: badkrma (Jan 16, 2008 22:17) Yep it just keeps getting better... a little lower in price and I got me a console and a blue ray player... cool... and blue ray will win this one folks.. |
Comment by: hughjars (Jan 17, 2008 01:24) nobrainer glad you did that.
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Comment by: vinny13 (Jan 17, 2008 02:25) Originally posted by hughjars: Ya way to make good news into bad news :/ |
Comment by: redux79 (Jan 17, 2008 04:29) Quote: The ps3 production cost dropping is the end result, but what could be the catalyst??? I want to see ps3 price drops as much the next person but if sony has to use borderline slave labor I'll pass.
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Comment by: vinny13 (Jan 17, 2008 04:55) Whatever.
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Comment by: ZippyDSM (Jan 17, 2008 05:12) Quote:Quote: I would not say slave labor...but can you say MS is better using crappy plants in china to churn out 360s?
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Comment by: Amir89 (Jan 17, 2008 12:19) Blu-Ray owning 70% of Home Video Market + Falling PS3 Prices is a formula for soaring PS3 sales.. Current Specs:
Intel82801BA Mobo, Intel D 945G @3.4Ghz, 2x2Mb L2 Cache, 1Gb DDR2 SD RAM @677Mhz, 250Gb WD Caviar @10,000Rpm, GeForce7600GT 512MB GDDR2, ASUSTek Tiger Digital/Analog TV Tuner, Samsung SyncMaster941BW 19" LCD, LG H20L DVD±R/RW DL LightScribe, LG GSA-4167B DVD±R/RW DL, Logitech Z-5500 505Watt 5.1 Surround ![]() |
Comment by: tin23uk (Jan 17, 2008 17:41) i hate to come accross as an idiot but if its so bad for these people working in the sweat shops and making only $50 a month, then why dont they get a job elsewhere. or are they also building ps3's at gunpoint and being chained to their beds at night.
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Comment by: hughjars (Jan 17, 2008 20:59) Originally posted by vinny13: - Yeah it's shocking, isn't it?
Originally posted by ZippyDSM: - You only need to look into this and you can say that in far too many instances that is exactly what this is.
Originally posted by ZippyDSM: - Frankly Zippy I could care less who is doing it.
Originally posted by ZippyDSM: - That's simply not true and effectively just an argument to pretend that 'our' western progress is an aberration which other (mostly) poor, (mostly) non-western & very much less privileged people cannot aspire to, expect or achieve.
Originally posted by ZippyDSM: - Naaaa zippy, that's just not true.
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Comment by: ZippyDSM (Jan 17, 2008 21:08) hughjars
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Comment by: vinny13 (Jan 17, 2008 21:24) Originally posted by hughjars:
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Comment by: hughjars (Jan 17, 2008 22:53) Originally posted by ZippyDSM: - It's quid pro quo Zippy.
Originally posted by vinny13: - What part of
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Comment by: ZippyDSM (Jan 17, 2008 23:01) hughjars
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Comment by: vinny13 (Jan 18, 2008 00:09) Originally posted by hughjars: I'm not using it as an excuse, you are very biased when it comes to any type of article that has to do with Blu-Ray. Like it's just HD-DVD period. It's always about the positives and ignoring the negatives. But they're your opinions, and nobody has to listen to them.
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Comment by: red2tango (Jan 18, 2008 02:41) Originally posted by Mestari81: bluray is the SHIT.games have 50gb and without that u wouldnt have killzone 2 or metal gear solid 4 or final fantasy 13.ps3 games are region free!get it i love it! |
Comment by: red2tango (Jan 18, 2008 02:45) Quote:Originally posted by ZippyDSM: Hughjars please get yourself a blog! |
Comment by: ZippyDSM (Jan 18, 2008 07:09) Quote:Originally posted by Mestari81:
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Comment by: borhan9 (Feb 15, 2008 04:31) Interesting if costs are down price goes down and hopefully the inflation does not hit. |
