Sony Keeps PS3 Alive, Cuts Production Costs By 35%
December 30, 2008
Washington (dbTechno) - The Sony PS3 may be behind rivals such as the Xbox 360 and Nintendo Wii, but it is still doing ok thanks to the fact that Sony has been able to cut production costs by 35%.
Usually when a video game console is released, the hardware manufacturer takes a loss on hardware sales to start.
The profits come from selling games, accessories, etc.
The PS3 was very risky when it came out as it was far more expensive than any other console ever released.
It appears though that Sony has fixed the PS3 to make it far more cost-effective.
According to iSuppli, Sony has been able to cut production costs of the PS3 by 35%, a very big number tos ay the hleast.
With these new production costs now being much lower than before, they should be able to get back all of their losses.
This would mean that Sony would, in the end, break even on the Sony PS3, not making or losing any money overall.
This could keep it alive and kicking as it continues to chase both the Wii and Xbox 360.
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