Friday, July 31

Manufacturing cost for the PS3 is down 70 percent says Sony

The rumored new SKU from Sony, companied by a price cut of about $100.00 seems more real everyday. As time goes by parts get cheaper to produce, giving companies the ability to make the products more streamline and rake in better profits. In this case Sony’s Playstation 3 is the beneficiary, with production costs down significantly.

In it’s annual report, and as found by, here’s the what made we news heads very excited:

"Regarding the reduction of hardware costs, efforts to shrink the Cell/B.E. progressed according to plan as the original 90nm generation gave way to 65nm and then 45nm devices. Through this, as well as through ongoing efforts to reduce the number of components used, Sony will endeavor to further improve profitability."

When pressed Oneda said the cost for making PS3 was down "about 70 percent, roughly speaking."

This must be great news for the company’s share holders who’ve been waiting patiently to see a turnaround in the near future. Let’s face it, Sony has seen its lead dwindle and eventually lost in many of its businesses. From the Sony walkman which lost its lead to the now omnipresent iPod. Then you have Samsung continually outselling the giant in the LCD Television sets department, and now, the biggest of all, the PS3. It is currently in third place behind Nintendo and Microsoft.

In my humble opinion, A price cut is needed, now.

07/31/09 Ernice Gilbert

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