PS3 Slim Review

Its not uncommon for video game companies to sell hardware at below cost with plans to make it all back (and eventually profit) from software sales

. Its the classic razor and blade model.


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Over time, the platform holder eventually breaks even on the hardware and even later begins to make money. This hasnt happened yet for Sony and the PlayStation 3.

When it launched in late 2006, Sony was losing hundreds of dollars on each console sold. While manufacturing costs have fallen since then, so too has the price of the system.

The latest redesign of the PlayStation 3, now the PS3 Slim, has had two effects: the slimmer, more efficient console and a lower price point.

A tear down by iSuppli reveals that it costs Sony $336.27 to manufacture each PlayStation 3. While that is already less than half of what it used to cost the company to make one, it is still losing money on each console sold at $299.

In October, Sony CFO Nobuyuki Oneda said of PlayStation 3 costs, "At present, the difference between sales and materials cost has been reduced to between 10 and 20%. Within the year, it could be in the single digits. We'll be able to reach profitability at some point in the next term."

So all of you who are picking up a PS3 now more than three years after launch, you're still getting a great deal on what's inside the box.

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Sony officially announces $299 PS3 Slim Compare with Xbox 360 and PS3