"It Only Does Everything"

Well, except make money. Three years after the launch of the original PS3, Sony has yet to profit from the hardware. It's getting close, though. The redesigned slim PlayStation 3 is smaller -- and thanks to the passage of time -- much cheaper to manufacture than the launch models, which lost Sony over $200 with each unit sold. According to iSuppli's teardown analysis, a current PS3 system costs $336.27 to make, about $500 cheaper than the first batch of consoles. With the system retailing for $300, Sony is still incurring at least a $40 loss per system, when you account for marketing and other additional costs. (This also means that Sony lost about $17.6 million over Black Friday week on PS3 hardware sales.)

The single most expensive component to the system is still Sony's proprietary Blu-ray disc drive, which is estimated to cost about $66 to make. Other components have dropped significantly in price thanks to a switch from 65nm conductors to 45nm. The end result is a far more power-efficient system that requires less power and cooling technologies. "In light of these factors, the PlayStation 3 probably is already at or near the tipping point for profitability," iSuppli's Andrew Rassweiler added. So, if for some reason you need Sony Corp to lose money, you better rush and buy a PS3 now before they make those things profitable!

[Via CNET]

This article was originally published on Joystiq.

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