Thursday, November 16, 2006

Sony losing money on each PS3 - iSuppli details

Now, that isn't news, but the teardown by market research company iSuppli shows just how much money it's losing.

The combined materials and manufacturing cost of the PlayStation 3 is $805.85 for the model equipped with a 20Gbyte Hard Disk Drive (HDD), and $840.35 for the 60Gbyte HDD version, according to iSuppli’s Teardown Analysis service’s preliminary estimate of expenses in the fourth quarter. This total doesn’t include additional costs for elements including the controller, cables and packaging.

At these costs, Sony is taking a considerable loss on each PlayStation 3 sold. Materials and manufacturing costs for the 20Gbyte model exceed the suggested retail price of $499 by a total of $306.85, iSuppli’s Teardown Analysis service estimates. For the 60Gbyte version, costs exceed the $599 price by $241.35.

Ouch! It needs to get the consoles out so that it can sell the games to make that money back!

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