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PS3 hardware only factor holding Sony profits back

Nick Doerr

For those who think Sony is a sinking ship, their report for the first quarter this fiscal year holds the words "profits" and "doubled". This is mostly thanks to Sony's other electronics divisions, like LCD TVs and nice cameras. It's not all cotton candy and ferris wheels, though. The PS3 is still selling below cost, supposedly, which is heading to pretty noticeable game division losses.

However, even with the losses, Sony acknowledges that compared to this time last year, profits from the PS3 selling are up 60%. All this leads us to ask what the PS3 actually costs to manufacture. Once the Emotion Engine stuff is removed, mass-production of the smaller pieces, or whatever else strategy Sony may employ, will they be able to sell the console at, say, $399 without taking a hit? It's a mystery, but let us know what you think it actually costs to manufacture the PS3.

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