Analyst: PS3 production costs dropped by 50% in a year


Business Week spoke with Nikko Citigroup analyst Kota Ezawa who believes changes in the PlayStation 3 have dropped production costs from $800 to about $400 per unit. Although Sony may have cut production costs dramatically it's not all sunshine and lollipops, Ezawa expects the Sony games division to lose about $1.4 billion this fiscal year, which is still better than the $2.1 billion loss last year and he doesn't expect prosperity in the division until '09.

With production costs continuing to drop and signs that Sony may see Blu-ray succeed, consumers who held out on the PS3 may see benefits this year. If the cadre of American analysts is correct, there may be another PS3 price drop this year -- although this time it'll appear more a sign of growth than desperation.

[Via PS3 Fanboy]

This article was originally published on Joystiq.