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With the PS3 feeling the “crunch”, Sony have come up with an idea that might result in the PS3 having a dramatic price cut.
According to Sony’s CEO Nobuyuki Oneda, the cost of making a PS3 has dropped by 70 percent, he announced this at a conference call with a group of investors.
Oneda informed investors that: “The cost reduction since we introduced the PS3 is very substantial and this is on schedule,”
“We don’t disclose how much of the PlayStation 3, specifically the cost deduction, was achieved during the past two years. But that is on schedule.”
The investors then pressed on him to talk more about the cost reduction, all he would say was: “About 70 per cent, roughly speaking.”
Sony have never stated how much it costs to make a PS3, but estimates have suggested that the price when the console launched was around $800/£485 for each machine. In January of last year however, reports indicated that the cost to make a PS3 had dropped substantially by 50 percent, thus dropping the cost to $400 / £243.
It’s not known if Sony is to announce a price cut to their PS3, but if you do the math, you will find out that Sony will have a lot of money to spare with the reduction in cost to manufacture one of these, so it is predicted that they will.
The recent rumour suggests that the PS3 is to have a $100 price cut, while this is merely a rumour, it’s created a lot of attention.
With the recession now affecting Sony quite severely and with Nintendo starting to lose sales also, I think that it’s in perfect timing that Sony have discovered a way to fight back.
Article from Gamersyndrome.com
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My name is Harry Monogenis. My passion for gaming could not be any bigger than it is now. I also adore writing. For some time I was trying to figure how to combine my two most favoured hobbies, and I found it, here at GamerSyndrome.
Feel free to contact me on: hazakid@hotmail.co.uk 
I’m predicting that Nintendo will soon use the same technique as Sony.
I think I paid that $800 price tag for my 80GB PS3 a couple years back.
Although since the price dropped to $400 I’ve always thought the PS3 had a fair price when compared to other console systems. The PS3 offers a lot that you have to pay extra for on other consolse, so the price really evens out. I still think the price drop would be a good idea because not everybody, especially more casual gamers and kids, want all of those features. Sony probably makes up for that with sales of the PS2, but ultimately they will want to be moving forward with the PS3. If the manufacturing quality doesn’t suffer then this should be a success for Sony.
The PS3 is exceptionally expensive, so a price cut would do Sony a lot of good. I think the reason they’re in a bit of a spot is simply because they have the price tag too damn high. I mean, for the price of a launch-day PS3, you could buy a Wii, a DS, and a whole library of games no problem.
I agree that the initial price of the PS3 was excessive. However, I also think that the current price of around $400 is comparable to the Xbox 360 considering all of the features the PS3 offers. After you’ve purchased a 360 capable of HDMI output, wireless networking, large storage space, and rechargable battery packs for the controllers and an Xbox Live subscription then you’ve probably spent $400 if not more.
I think at current the PS3 is well priced, its basically a full function media center. That being said, everyone likes a price drop… but this is Sony they usually only price drop that much if another unit is coming out soon
Such as the rumoured PS3 slim? It was shown on the German Amazon website..
If i was Sony I wouldn’t price cut that drastically I would hold true to the Sony name and keep the profits and help Sony out of the economic slump
No Way! I totally spent over eight hundred dollars on Playstation 3. And before that I spend around the same thing for my Playstation 2. This price slash is unbeleivable. I just give up on this whole thing. This just plain su*ks
70% less than 800 dollars to produce is still not great.
I doubt a price cut is coming any time soon , given what Sony CEO Howard Stringer said about why he won’t implement a PS3 price cut; “I (would) lose money on every PlayStation I make — how’s that for logic.”
http://www.reuters.com/article/technologyNews/idUSTRE5670C120090708
Considering he said that statement less than a month ago, I doubt the situation has changed much since then.
Actually Varus, there was a price cut before this one, I’m not too sure on the figures, but 800 dollars is not how much it cost before the 70 pre cent announcement.
Sony really has a big stuff. But considering the price men its too much. But no question asked it will be a great console and will have a more greater games to play with.