Sony PS3 'costs at least $805-840' to make

Analyst prices up console's production


Sony's PlayStation 3 games console costs the consumer electronics giant at least $840 to make, $241 more than the $599 asking price, market watcher iSuppli has claimed. Its figure is its estimate for the cost of the materials and manufacturing, but Sony's R&D and marketing expenditure will surely push the console's unit cost much higher.

Like a number of reporters, iSuppli disassembled both the 20GB PS3 and the 60GB model. The cost of making the 20GB console comes to just under $806, iSuppli said, almost $307 more than the $499 asking price. Both iSuppli figures do not include the console's controller, cables and packaging, the company said.

Compare the numbers to iSuppli's estimate of how much it costs Microsoft to make a hard drive-fitted Xbox 360: $323, $76 less than the $399 retail price. Don't forget that in both vendors' cases the retail price is more than the company itself will receive, inflating Sony's loss and reducing Microsoft's profit margin. And Microsoft has had a year to drive up volumes and lower production costs.

Back to the PS3, the most expensive component appears to be not the Cell processor but Nvidia's Reality Synthesiser - as Sony calls it - graphics chip, at $129. The Cell chip, on the other hand, costs $89, iSuppli estimated. The Blu-ray Disc drive costs $125, it said.

Fitting the PS3 with an EE+GS chip to ensure backward compatibility with old PS2 and PSOne games - well, it's almost compatible - costs Sony $27 per console, iSuppli reckons. ®


Other stories you might like

  • Stolen university credentials up for sale by Russian crooks, FBI warns
    Forget dark-web souks, thousands of these are already being traded on public bazaars

    Russian crooks are selling network credentials and virtual private network access for a "multitude" of US universities and colleges on criminal marketplaces, according to the FBI.

    According to a warning issued on Thursday, these stolen credentials sell for thousands of dollars on both dark web and public internet forums, and could lead to subsequent cyberattacks against individual employees or the schools themselves.

    "The exposure of usernames and passwords can lead to brute force credential stuffing computer network attacks, whereby attackers attempt logins across various internet sites or exploit them for subsequent cyber attacks as criminal actors take advantage of users recycling the same credentials across multiple accounts, internet sites, and services," the Feds' alert [PDF] said.

    Continue reading
  • Big Tech loves talking up privacy – while trying to kill privacy legislation
    Study claims Amazon, Apple, Google, Meta, Microsoft work to derail data rules

    Amazon, Apple, Google, Meta, and Microsoft often support privacy in public statements, but behind the scenes they've been working through some common organizations to weaken or kill privacy legislation in US states.

    That's according to a report this week from news non-profit The Markup, which said the corporations hire lobbyists from the same few groups and law firms to defang or drown state privacy bills.

    The report examined 31 states when state legislatures were considering privacy legislation and identified 445 lobbyists and lobbying firms working on behalf of Amazon, Apple, Google, Meta, and Microsoft, along with industry groups like TechNet and the State Privacy and Security Coalition.

    Continue reading
  • SEC probes Musk for not properly disclosing Twitter stake
    Meanwhile, social network's board rejects resignation of one its directors

    America's financial watchdog is investigating whether Elon Musk adequately disclosed his purchase of Twitter shares last month, just as his bid to take over the social media company hangs in the balance. 

    A letter [PDF] from the SEC addressed to the tech billionaire said he "[did] not appear" to have filed the proper form detailing his 9.2 percent stake in Twitter "required 10 days from the date of acquisition," and asked him to provide more information. Musk's shares made him one of Twitter's largest shareholders. The letter is dated April 4, and was shared this week by the regulator.

    Musk quickly moved to try and buy the whole company outright in a deal initially worth over $44 billion. Musk sold a chunk of his shares in Tesla worth $8.4 billion and bagged another $7.14 billion from investors to help finance the $21 billion he promised to put forward for the deal. The remaining $25.5 billion bill was secured via debt financing by Morgan Stanley, Bank of America, Barclays, and others. But the takeover is not going smoothly.

    Continue reading

Biting the hand that feeds IT © 1998–2022