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