Sony PS3 Cost Reduction to Stay Competatively in Gaming Market
Gaming segment is always a hot market full with stiff competition in both pricing and performance. While trying to compete against other rivals’ solutions, Sony has been working continuously to further reduce its BOM (Bill of Material) cost while still able maintain its original quality. Just recently, the Japanese console maker has disclosed that they managed to further reduce PlayStation 3 console costs by a significant 70 percent, as compared to when it was first launched back to 2006.
Although the exact figure of how much it cost to build the system is unknown, but with the original estimated system cost of around $800, the new cost can be expected to stay at $240. If you recall, Sony was actually absorbing loss of $50 per console unit sold but was hoping to able to make profit with its gaming titles sold to consumer markets. The main contributor to the cost reduction is believed to be due to popularity and common use of Blu-ray drive which was way too expensive when available last two to three year time. Besides, the smaller processor technology with much stable mass production process and lesser yield loss are able to keep the cost further down as direct benefits to both manufacturer and consumers.
No firm date on when the actual selling price will be reflected yet, but this is definitely a good news for Sony PS3 fans that are looking to own an affordable console system as the cost reduction may potentially drive a ‘slim down’ version of PS3 at cheaper retail price soon.
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August 20th, 2009 01:03
[...] and expected to reach commercial space by early next month. This news seems to be aligned with the cost reduction effort initiated by the Japanese company in an attempt to keep itself competitive in this gaming [...]