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

Tags: PS3-Manufacturing-Costs, PS3-Price-Cut, Sony-Price-of-Manufacturing

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3 Comments » Eric on January 14, 2008 5:45 pm Hello… the PS3 was never $800.. the original 60GB PS3 debuted at $599. I bought it less than 1 month later. nate on November 15, 2008 11:45 pm ^^ above hey genius these are manufacturing costs not how much the consumer payed it was alot because the diode for blu ray was in short supply at the time Shawn on December 14, 2008 10:15 am Eric the first released PS3 was 799.99$ they reduced prices almost immediatly. RSS feed for comments on this post. Comment Now Note: Commenting on Ripten does not currently require registration, however to be eligible for contests on the site, you must be a registered user. Name (required) Mail (will not be published) (required) Website Commenting Rules: No hate speech allowed. If you must argue, please debate intelligently. Comments containing selected keywords or outbound links will be put into moderation to help prevent spam. Ripten reserves the right to delete comments and ban anyone who doesn't follow the rules. Thanks. Notify me of followup comments Tired of the Goomba? Upload your own custom comment avatar.