Next-gen.biz has written a short and concise article about the costs involved in making a PS3 compared to a Xbox 360 Elite.
In a nut shell a PS3 costs $840.35 and it sells for $599 leaving it losing $241.35 per console. That is more than a Nintendo Wii even costs… Scary
The Xbox 360 Elite costs $323.20 to manufacture and it sells for $479 which means Microsoft are making a profit of $155.80 per console sold….
Microsoft must be smiling at the moment as they clearly have the price jump on the PS3 and are just now waiting for the best time for a huge price drop…
I don’t see how Sony is going to keep up if the standard Xbox premium starts retailing at around R2000…. Which is entirely possible at this rate. Microsoft won’t mind not making any profit at all on the hardware.
Link to PS3 Production Costs Dwarf Xbox 360’s : Next Generation – Interactive Entertainment Today, Video Game and Industry News
Last Updated: May 7, 2007
scotty777
May 7, 2007 at 17:21
hmmm… some how i can’t see the ps3 costing $840.35, maybe with commercial prices but not straight from the factory like sony gets it
doobiwan
May 7, 2007 at 17:48
Scotty, iSupply gets the prices directly from whomever supplies the components, and they’re pretty reliable, they’ve been around for quite a bit.
Ruslan
May 8, 2007 at 07:44
Wow… MS are actually going to make a profit in hardware for a change. Woot!
Leon
August 23, 2007 at 11:22
I received a Xbox 360 in February 2007 as a birthday gift, and low and behold stopped working after 3 weeks.
Phoned Microsoft that gave me a reference number, and told me I can go and collect a new XBOX at the retailer. Get to CNA and they spin me a whole new story, of them having to send it in for repairs, they also then require that w whole new set of firms are filled , and new reference number be obtained from Microsoft.
They said this repair process will take 6 weeks. First, they should have given me a replacement XBOX on the spot. Microsoft do not have a repair centre in South-Africa. CNA get your act together.
3 months down the line I still didn’t have my Xbox back, and after numerous phone calls to CNA customer complaints, the store manger they eventually got me a new Xbox. 4 months after returning it.
All this would have been fine, if the new Xbox didn’t BREAK last night, 1 WEEK after getting it !!!
1 Week ! and a DVD drive failure, jipee to MIcrosft !!!
Do yourself a favour, do not get a XBox.
Leon
August 23, 2007 at 11:32
Should you not factor in the fact that every damn XBOX wil eventaully break. Repair cost is somewhere in the 1 billion $ for Micrsoft.
I’ve had 2 Xbox’s, both only lasted a month. First 1, the 3 rings of death and the other one the DVD failed after 1 week.
The reason why PS3 is so epensive is due to the fact that they use qaulity hardware.
But it seems only Nintendo got the whole thing right.
LazySAGamer
August 23, 2007 at 11:54
Leon sorry to hear about your problems, To be fair though it’s not Microsofts fault that your branch of CNA was staffed by morons… It should have been a straight swap…
The PS3 is so expensive because it uses bleeding edge hardware (Cell and Blu-Ray) which is still very pricey…. They are more reliable though. We just need more games that justify the expense…
oh and please don’t spam the site with the same comment 😉