Sony Cuts PS3 Manufacturing Costs In Half

According to BusinessWeek Sony has cut manufacturing costs of the PS3 by half: making the current cost $400 instead of the $800 they started with at launch. Nikko Citigroup’s Kota Ezawa chalks up the price reduction to smaller chip sizes and design tweaks.

Could this be the real reason why Sony decided to cut the price of the PS3 so early in the game? Regardless, halving the manufacturing costs of such a pricey console can only bode well for potential customers.

This juxtaposed with Sony’s immanent HD victory has stocks rising steadily with a 4% increase in Tokyo. It seems their Trojan Horse video format has finally paid off. It’s only a matter of time before this success is passed down as a savings to the end consumer—hopefully.

Via BusinessWeek, Joystiq