PS3 teardown: 30% fewer parts, $300 cheaper

When the gang at iSuppli first tore open a PlayStation 3 back in November 2006, they pegged the cost to build the $500 model was $805 in materials. Now they're back and looking inside the $400 version, which they estimate is $448.73 in parts -- still a loss leader for the company, but only by about one Ulysses S. Grant this time. The number of components has also dropped from 4,048 to just 2,820, and both the Cell processor and NVIDIA GPU have slimmed down from 90nm to 65nm. They suspect Sony might be able to lower costs and turn a profit sometime in 2009, but while you may be rooting for this generation's underdog, don't get your hopes up for a price drop any time soon.