Overclock.net › Forums › Industry News › Video Game News › [DailyTech]Report: Sony Loses $50 for Each PS3 Sold Today
New Posts  All Forums:Forum Nav:

[DailyTech]Report: Sony Loses $50 for Each PS3 Sold Today

post #1 of 11
Thread Starter 
Quote:
iSuppli teardown report shows PS3 is much cheaper to build today than in 2006

Sony's PS3 game console is popular among many gamers, but faces significant competition from the Xbox 360 and the Nintendo Wii. Much of the pressure placed on the PS3 by the other two major game consoles is one of price.

One of the reasons that the PS3 is still priced well above some versions of the Xbox 360 and the Nintendo Wii is because the components and technology used in the PS3 make it more expensive to build. It's hard for Sony to cut the price of its console when the system is already being sold at a major loss.

When the PS3 first launched in 2006, iSuppli tore the system down and found that it cost Sony about $840 to build the version of the PS3 selling for $599 at the time, accounting for a loss of around $240 per PS3 sold. Sony expected to make the money up on the backend with game and accessory sales.

The basic PS3 console, which sold for $499 in 2006, cost Sony only slightly less to build at $805 according to iSuppli. After two years of availability, iSuppli has again performed a teardown of the PS3 and found that Sony is still losing money on the console.

The bright light for the electronics giant is that despite still selling at a loss, the PS3 is losing much less money today than it did in 2006. The research firm reports that the PS3 costs Sony about $448 to build and the system sells for $399. The loss Sony is now taking on the PS3 amounts to about $50.

iSuppli analyst Andrew Rassweiler told Business Week, "Every time we do a teardown, it's sort of backward-looking. Sony is one step ahead of us and probably has plans to re-spin the hardware to reduce the costs yet again."
The key to reducing the cost to build the PS3 so significantly for Sony is the combination of what used to take two or more chips on early PS3 models to a single chip for the same tasks on today's PS3. The console has also moved to smaller nanometer scale build processes for the GPU and the Cell processor. The NVIDIA GPU and the Cell processor in early PS3 were built on a 90nm scale; today the parts are built on a 65nm scale making them cheaper to produce. The Cell processor is now estimated to cost $46 compared to the $89 price tag in 2006.

The NVIDIA graphics chip now costs $58 compared to the $129 in 2006. The total number of parts used in the PS3 was 4,048 in 2006 and today the PS3 uses 2,820. Rassweiler says, "At the end of the day the PS3 is doing the same thing it did before, but with two-thirds as many parts."
DailyTech reported in January of 2008 that Sony expected the PS3 to be profitable in 2009. If the components inside the console continue to drop in price as they have since introduction, Sony may well meet that goal in 2009.
Source
Viper
(17 items)
 
  
CPUMotherboardGraphicsRAM
intel 2500k MSI P67A-GD53 PNY GTX 460 1GB 2x4GB G. Skill Sniper 
Hard DriveHard DriveOptical DriveCooling
Crucial M4 64GB 2x WD6400AAKS Samsung 22x Corsair H70 
OSMonitorPowerCase
Windows 7 64-Bit Dell S2309W PC Power & Cooling 500w Lian Li PC-A05NB 
MouseMouse PadAudioAudio
Microsoft Sidewinder X5 SteelSeries QcK Sony MDR-XB500 FiiO E6 Headphone Amp 
  hide details  
Reply
Viper
(17 items)
 
  
CPUMotherboardGraphicsRAM
intel 2500k MSI P67A-GD53 PNY GTX 460 1GB 2x4GB G. Skill Sniper 
Hard DriveHard DriveOptical DriveCooling
Crucial M4 64GB 2x WD6400AAKS Samsung 22x Corsair H70 
OSMonitorPowerCase
Windows 7 64-Bit Dell S2309W PC Power & Cooling 500w Lian Li PC-A05NB 
MouseMouse PadAudioAudio
Microsoft Sidewinder X5 SteelSeries QcK Sony MDR-XB500 FiiO E6 Headphone Amp 
  hide details  
Reply
post #2 of 11
Blue laser diodes.

They have to try and recoup that lose through game sales - Thats why it was so important for them to get some good games out in 2008 which they did, especially compared to 2006.
Po' Pimpin'
(11 items)
 
  
CPUMotherboardRAMHard Drive
i5 2500k @ stock Biostar TZ68K+ [A3] 4GB  Sandforce 1222 64GB SSD 
Optical DriveCoolingOSMonitor
LG 22x DVD-+RW  Stock Windows 7 x64 Acer S211HL 1080p 
PowerCaseMouse
600w Diablotek Linkworld Electronic Inland 
  hide details  
Reply
Po' Pimpin'
(11 items)
 
  
CPUMotherboardRAMHard Drive
i5 2500k @ stock Biostar TZ68K+ [A3] 4GB  Sandforce 1222 64GB SSD 
Optical DriveCoolingOSMonitor
LG 22x DVD-+RW  Stock Windows 7 x64 Acer S211HL 1080p 
PowerCaseMouse
600w Diablotek Linkworld Electronic Inland 
  hide details  
Reply
post #3 of 11
Haha they lost more than that when I bought mine I got crafty and managed to get it retail for $207 shipped. Should be here on Friday
Quad Rig
(15 items)
 
  
CPUMotherboardGraphicsRAM
i5 3570K Gigabyte GA-Z77x-UD5H Sapphire 5850 16 GB G.skill 1600 
Hard DriveOptical DriveCoolingOS
Crucial M4 256gb 2x Samsung 18x DVD-RW Custom Watercooling Windows 7 Home 
MonitorKeyboardPowerCase
27" Asus 1080p Logitech G710+ Corsair 750TX CoolerMaster Stacker 810 
MouseMouse PadAudio
Logitech G500s Steelseries Klipsch Promedia 5.1 
  hide details  
Reply
Quad Rig
(15 items)
 
  
CPUMotherboardGraphicsRAM
i5 3570K Gigabyte GA-Z77x-UD5H Sapphire 5850 16 GB G.skill 1600 
Hard DriveOptical DriveCoolingOS
Crucial M4 256gb 2x Samsung 18x DVD-RW Custom Watercooling Windows 7 Home 
MonitorKeyboardPowerCase
27" Asus 1080p Logitech G710+ Corsair 750TX CoolerMaster Stacker 810 
MouseMouse PadAudio
Logitech G500s Steelseries Klipsch Promedia 5.1 
  hide details  
Reply
post #4 of 11
Quote:
Originally Posted by 0rion View Post
Haha they lost more than that when I bought mine I got crafty and managed to get it retail for $207 shipped. Should be here on Friday
Chances are good someone else took the additional loss other than Sony. This is also a lot like the post from earlier about how Sony is making PS3 for 53% less than it was at launch but interesting.
Home 1
(14 items)
 
  
CPUMotherboardGraphicsRAM
AMD FX-6300 Vishera  ASUS M5A78L-M LX PLUS HD7950 8GB DDR3 
Hard DriveCoolingOSMonitor
WD 250GB Stock Windows 10 32 inch 
PowerCase
EVGA 600B Rosewill 
  hide details  
Reply
Home 1
(14 items)
 
  
CPUMotherboardGraphicsRAM
AMD FX-6300 Vishera  ASUS M5A78L-M LX PLUS HD7950 8GB DDR3 
Hard DriveCoolingOSMonitor
WD 250GB Stock Windows 10 32 inch 
PowerCase
EVGA 600B Rosewill 
  hide details  
Reply
post #5 of 11
Good thing they had half a dozen truly Triple A titles this year, so they can make some money off of game sales. As long as they don't start charging for online to recoup server costs / system loss, I'll be happy.

And before you ask about Triple A games: MGS4, GTA IV, Little Big Planet, Fallout 3, Resistance 2, Dead Space. Yes, they're not all exclusives, but they are games a lot of PS3 owners will probably buy.
post #6 of 11
Its more than $50. It would be $50 if we bought direct from Sony. The retail store gets a profit too!


The PS3 needs to lose the large cancerous hump of a cooler. Sure they don't get overheating errors like the 360's RROD, but at what cost?

Blu-ray was maybe a little early, but I think necessary in the end. The laser diodes were worth the price.

The Cell processor however was a big mistake. The only real difference between the 360 and PS3 is the Cell and Blu-Ray(and wireless, but thats like $5 more). We can buy PS3-quality DVD readers for $100, yet it costs Sony at least another $100 to produce a PS3 over a 360. That means that the 360's triple core power pc performs just as good(often better) than the Cell in gaming situations, while costing significantly less.
    
CPUMotherboardGraphicsRAM
Core i5 4670k ASUS Maximus VI Gene Gigabyte GTX 460 1GB Kingston Hyper-X 
Hard DriveHard DriveHard DriveHard Drive
Samsung 830 OCZ Vertex 3 WD6401AALS WD5000AAKS 
CoolingOSMonitorMonitor
Noctua NH-D14 elementary OS Dell Ultrasharp U2312HM LG W2442PA-BF 
KeyboardPowerCaseMouse
Microsoft Sidewinder X4 Corsair HX750W Corsair Graphite 600T Logitech G700 
Audio
ASUS Xonar DG 
  hide details  
Reply
    
CPUMotherboardGraphicsRAM
Core i5 4670k ASUS Maximus VI Gene Gigabyte GTX 460 1GB Kingston Hyper-X 
Hard DriveHard DriveHard DriveHard Drive
Samsung 830 OCZ Vertex 3 WD6401AALS WD5000AAKS 
CoolingOSMonitorMonitor
Noctua NH-D14 elementary OS Dell Ultrasharp U2312HM LG W2442PA-BF 
KeyboardPowerCaseMouse
Microsoft Sidewinder X4 Corsair HX750W Corsair Graphite 600T Logitech G700 
Audio
ASUS Xonar DG 
  hide details  
Reply
post #7 of 11
Quote:
Originally Posted by nathris View Post
The PS3 needs to lose the large cancerous hump of a cooler. Sure they don't get overheating errors like the 360's RROD, but at what cost?
Im doubt the cooler was that big of a cost. But I do think its necessary because it is probably the coolest and quietest of the consoles - its a big + to some people. Many more then you would think.
Quote:
Blu-ray was maybe a little early, but I think necessary in the end. The laser diodes were worth the price.
Yeah - Blu-Ray was 100% necessary because like I said in the other thread - it's what brought Blu-Ray to victory over HD-DVD and will later cash in massively for Sony.

Quote:
The Cell processor however was a big mistake. The only real difference between the 360 and PS3 is the Cell and Blu-Ray(and wireless, but thats like $5 more).
I kind of agree. But what I think is a much bigger mistake is the GPU. Sony made a processor that should be really powerful - but paired it with a crappy GPU that probably bottlenecks the living hell out of it. And obviously - the SDK for the Cell is said to be the biggest turn off for devs.

May I ask where you got $5 from for the wireless? M$ sells their wireless thing for $100 still. Obviously, thats a really jacked up price but I would still think it costs a good $20-50 in reality.

Quote:
We can buy PS3-quality DVD readers for $100, yet it costs Sony at least another $100 to produce a PS3 over a 360. That means that the 360's triple core power pc performs just as good(often better) than the Cell in gaming situations, while costing significantly less.
Yeah - the Cell wasn't the best of ideas. Different - but it didn't turn out the way I think they were aiming for obviously.

IMO - Sony should have done a better SKU selection.
Like for example - Sony should have sold their lesser model without the wireless and did what MS did, sell the wireless adapter separately.

Also - right off the bat - they should have never done the backward compatibility hardware and software. Instead, drop the price of the slim PS2 a little more. Even right now I think a slim PS2 goes for $50. People shouldn't make a big fuss over the BC.
Edited by OmegaNemesis28 - 12/24/08 at 9:39pm
Nemesis NE-α
(15 items)
 
   
CPUMotherboardGraphicsRAM
Intel Core i7 4790k (Devil's Canyon) AsRock Z97 Extreme 4 Visiontek AMD 6990 Corsair XMS3 DDR3 1600 
Hard DriveCoolingOSMonitor
Samsung EVO 840 XSPC Raystorm Windows 8.1 Dell U2311H 1920x1080 IPS 
MonitorMonitorKeyboardPower
Dell U2311H 1920x1080 IPS Dell U2311H 1920x1080 IPS Ducky Blue Overclock.net Themed Mechanical Keyb... Corsair Silver 1kw  
CaseMouseAudio
Case Labs TH10 Logitech G502 Logitech 5.1 speakers w/ Onkyo Receiver 
CPUMotherboardGraphicsRAM
Intel Xeon W3520 i7 4.0ghz EVGA X58 Classified Visiontek 6990 GSkill 6GB DDR3 Pi 
Hard DriveOptical DriveOSMonitor
2x OCZ Vertex 60GB SSD ; 2x 1TB ; 2x 2TB Samsung BluRay Burner Windows 7 Ultimate 64x 3x Dell U2311H 23" 1080p IPS 
KeyboardPowerCaseMouse
Logitech G15 Gaming Keyboard SilverStone Strider 1000w Modular Power Supply Lian Li V2000 Plus Logitech G9 Gaming Laser Mouse 
Mouse Pad
Cyba Sniper Tracer (Acrylic Glass) 
  hide details  
Reply
Nemesis NE-α
(15 items)
 
   
CPUMotherboardGraphicsRAM
Intel Core i7 4790k (Devil's Canyon) AsRock Z97 Extreme 4 Visiontek AMD 6990 Corsair XMS3 DDR3 1600 
Hard DriveCoolingOSMonitor
Samsung EVO 840 XSPC Raystorm Windows 8.1 Dell U2311H 1920x1080 IPS 
MonitorMonitorKeyboardPower
Dell U2311H 1920x1080 IPS Dell U2311H 1920x1080 IPS Ducky Blue Overclock.net Themed Mechanical Keyb... Corsair Silver 1kw  
CaseMouseAudio
Case Labs TH10 Logitech G502 Logitech 5.1 speakers w/ Onkyo Receiver 
CPUMotherboardGraphicsRAM
Intel Xeon W3520 i7 4.0ghz EVGA X58 Classified Visiontek 6990 GSkill 6GB DDR3 Pi 
Hard DriveOptical DriveOSMonitor
2x OCZ Vertex 60GB SSD ; 2x 1TB ; 2x 2TB Samsung BluRay Burner Windows 7 Ultimate 64x 3x Dell U2311H 23" 1080p IPS 
KeyboardPowerCaseMouse
Logitech G15 Gaming Keyboard SilverStone Strider 1000w Modular Power Supply Lian Li V2000 Plus Logitech G9 Gaming Laser Mouse 
Mouse Pad
Cyba Sniper Tracer (Acrylic Glass) 
  hide details  
Reply
post #8 of 11
The Cell isn't a complete loss, Gran Turismo 5 baby, lets hope it's physics are much better then the already amazing Forza 2's. So far I am pretty impressed with GT5P.
Watercooler
(13 items)
 
  
CPUMotherboardGraphicsRAM
i7 920 D0 @ 4400MHz [24/7] X58 Classified 3870 Toxic Dominator GT 1680 [6-6-5-16] 
Hard DriveOptical DriveOSMonitor
7200.12 - 500GB [RAID 1] Plextor PX-7555A Windows 7 Samsung 2343BWX 2048x1152 
KeyboardPowerCaseMouse
Logitech G19 Corsair HX850W Silverstone TJ07 Logitech G9 
Mouse Pad
Fragmat 
  hide details  
Reply
Watercooler
(13 items)
 
  
CPUMotherboardGraphicsRAM
i7 920 D0 @ 4400MHz [24/7] X58 Classified 3870 Toxic Dominator GT 1680 [6-6-5-16] 
Hard DriveOptical DriveOSMonitor
7200.12 - 500GB [RAID 1] Plextor PX-7555A Windows 7 Samsung 2343BWX 2048x1152 
KeyboardPowerCaseMouse
Logitech G19 Corsair HX850W Silverstone TJ07 Logitech G9 
Mouse Pad
Fragmat 
  hide details  
Reply
post #9 of 11
well in reality the cell may have been a mistake, but the general consumer still holds it up on a pedistal, so image-wise it helps them. 99% of people asked would say that the PS3 is way more powerful than an x360

you should see the looks of disbelief and discust i get when i say my sig rig is at least 2x as powerful as a PS3/X360........people think i'm crazy
    
CPUMotherboardGraphicsRAM
i7 960 4.1ghz HT on Gigabyte X58A-UD7 ASUS 6970 DCII (975/1498 1.2V) 4x4GB G.skill 
Hard DriveOptical DriveCoolingOS
Crucial M500 480GB + 2tb WD Passport Samsung 20x DVD-RW Corsair H100i Win10 x64 
MonitorKeyboardPowerCase
Dell u2711 G15 (v2) corsair AX850 Fractal R5 
MouseMouse PadAudio
G5 dota custom asus xonar essence stx 
  hide details  
Reply
    
CPUMotherboardGraphicsRAM
i7 960 4.1ghz HT on Gigabyte X58A-UD7 ASUS 6970 DCII (975/1498 1.2V) 4x4GB G.skill 
Hard DriveOptical DriveCoolingOS
Crucial M500 480GB + 2tb WD Passport Samsung 20x DVD-RW Corsair H100i Win10 x64 
MonitorKeyboardPowerCase
Dell u2711 G15 (v2) corsair AX850 Fractal R5 
MouseMouse PadAudio
G5 dota custom asus xonar essence stx 
  hide details  
Reply
post #10 of 11
Quote:
Originally Posted by nathris View Post
Its more than $50. It would be $50 if we bought direct from Sony. The retail store gets a profit too!
Best Buy makes no more than $10 on each console sold.
New Rig
(13 items)
 
  
CPUMotherboardGraphicsRAM
Phenom 9950 125w @ 3.01ghz ASUS M3A79-T Deluxe XFX 5770 1GB 4GB (2x2GB) Mushkin Redline @ 5-5-5-12 DDR21066 
Hard DriveOptical DriveOSMonitor
2x WD Caviar Black 640gb AALS Samsung SATA DVD Burner Windows 7 Ultimate x64 Acer H233H 23" 1080P Monitor 
KeyboardPowerCaseMouse
G15 v2 Corsair TX750 750w Antec 902 Razer Mamba 
Mouse Pad
fUnc Archetype Surface 1030 
  hide details  
Reply
New Rig
(13 items)
 
  
CPUMotherboardGraphicsRAM
Phenom 9950 125w @ 3.01ghz ASUS M3A79-T Deluxe XFX 5770 1GB 4GB (2x2GB) Mushkin Redline @ 5-5-5-12 DDR21066 
Hard DriveOptical DriveOSMonitor
2x WD Caviar Black 640gb AALS Samsung SATA DVD Burner Windows 7 Ultimate x64 Acer H233H 23" 1080P Monitor 
KeyboardPowerCaseMouse
G15 v2 Corsair TX750 750w Antec 902 Razer Mamba 
Mouse Pad
fUnc Archetype Surface 1030 
  hide details  
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Video Game News
Overclock.net › Forums › Industry News › Video Game News › [DailyTech]Report: Sony Loses $50 for Each PS3 Sold Today