The Sony PlayStation 3 hardware is closer to break even, says iSuppli, with parts from a 120GB model dropping to an estimated cost of $336 USD. The console sells for $300 in the US and the equivalent of $438 in the UK, and prices are expected to continue falling into the Q1 2010.
Adds iSuppli analyst Andrew Rassweiler: "In light of these factors, the PlayStation 3 probably is already at or near the tipping point for profitability."
iSuppli had previously suggested that Sony was losing up to $50 per console, despite the unit selling for $100 more than it currently sells for.
"Since the introduction of the PlayStation 3 in late 2006, Sony has subsidized the price of every console sold, a deficit the company has made up for with game sales and royalties," added Rassweiler.
The most expensive component of the system is the Blu-ray drive, which costs an estimated $66 USD. In second is the Nvidia Reality Synthesizer graphics chip at $45.82, and the Cell processor chip is down to $37.73.
iSuppli had previously suggested that Sony was losing up to $50 per console, despite the unit selling for $100 more than it currently sells for.
"Since the introduction of the PlayStation 3 in late 2006, Sony has subsidized the price of every console sold, a deficit the company has made up for with game sales and royalties," added Rassweiler.
The most expensive component of the system is the Blu-ray drive, which costs an estimated $66 USD. In second is the Nvidia Reality Synthesizer graphics chip at $45.82, and the Cell processor chip is down to $37.73.
