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PlayStation 3 Offers Supercomputer Performance at PC Pricing, iSuppli’s Teardown Analysis Reveals

From delivery delays, to technology hurdles, to missed production targets, to cancelled pre-orders, to an apparently exorbitant price tag — we’ve all read the bad news regarding Sony Corp.’s much-anticipated new PlayStation 3 video-game console.

Now for the good news: iSuppli Corp.’s dissection reveals the PlayStation 3 is an engineering masterpiece that sets a new high mark for computing price/performance — even when considering it is more expensive than its nearest rival, the Xbox 360 from Microsoft Corp. "With the PlayStation 3, you are getting the performance of a supercomputer at the price of an entry-level PC," said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.

The combined materials and manufacturing cost of the PlayStation 3 is $805.85 for the model equipped with a 20Gbyte Hard Disk Drive (HDD), and $840.35 for the 60Gbyte HDD version, according to iSuppli’s Teardown Analysis service’s preliminary estimate of expenses in the fourth quarter. This total doesn’t include additional costs for elements including the controller, cables and packaging.

At these costs, Sony is taking a considerable loss on each PlayStation 3 sold. Materials and manufacturing costs for the 20Gbyte model exceed the suggested retail price of $499 by a total of $306.85, iSuppli’s Teardown Analysis service estimates. For the 60Gbyte version, costs exceed the $599 price by $241.35.

In contrast, the HDD-equipped Xbox 360 has a manufacturing and materials total of $323.30, based on an updated estimate using costs in the fourth quarter of 2006. This total is $75.70 less than the $399 suggested retail price of the Xbox 360.

It’s common for video-game console makers to lose money on hardware, and make up for the loss via video game-title sales. Still, the size of Sony’s loss per unit is remarkable, even for the video-game console business.

Despite this, iSuppli’s Teardown Analysis shows that with the PlayStation 3, Sony has delivered an amazing level of performance for the cost.

 [November 17, 2006]


 

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  • Sony Gets One Step Closer to Breakeven Point with Latest PlayStation 3 Design (December 14, 2009)
  • Black Friday PlayStation 3 Sales Spur Return to Growth for Video Game Consoles (December 9, 2009)
  • Semiconductor Market Declines Less Than Expected, Samsung Shines in 2009 (November 24, 2009)
  • Sony Opens the Door for More Independent Authors and Publishers with Publishing Portal (September 30, 2009)
  • Leading Companies Form Mobile High-Definition Interface Working Group to Drive Industry Standard for Mobile Wired Connectivity (September 30, 2009)
  • New Blu-ray Players From Sony Combine Wireless Connectivity With Style and Performance (September 18, 2009)
  • Sony Introduces World’s First In-Ear Digital Noise Cancelling Headphones (September 14, 2009)
  • Sony Boosts Its ES Range With New Receivers and a 400-Disc Blu-ray Mega-Changer (September 10, 2009)
  • Master Blaster: SRS-DB500 2.1ch PC Speakers With S-Master Full Digital Amplifier Technology for Incredible Power and Ultimate Bass (September 10, 2009)
  • Sony Debuts First PC Speaker With Dock for iPod / iPhone (September 4, 2009)
  • Digital Reading Ecosystem Expands for Sony’s Reader (August 26, 2009)
  • Sony Music Entertainment Ranked Among Top 10 Online Music Destinations (August 26, 2009)
  • New Slimmer and lighter Playstation 3 to hit worldwide Market this september (August 19, 2009)
  • Sony Unveils Two New Editions To The Reader Family; Drops eBook Pricing (August 10, 2009)
  • Sony Adds Netflix to Bravia Internet Video Platform (July 10, 2009)
  • MHS-PM1 Mobile HD Snap camera from Sony: Stylish Device Provides Quick Video and Photo Uploads to the Web (July 6, 2009)
  • VAIO NW from Sony: everyday computing and entertainment notebook with Blu-Ray technology (July 1, 2009)
  • Sony gets an exclusive videogame from Rockstar : AGENT (June 9, 2009)
  • Sony’s PlayStation Portable gets Obscure (May 8, 2009)
  • Discover MAG (Zipper Interactive), a multiplayer fest (May 1, 2009)
  • Sleek Styling, Powerful Performance and the Smoothest, Sharpest BRAVIA Picture Ever (May 1, 2009)
  • New Sony Noise Cancelling Bluetooth Headphones Produce Flawless Wire Free Audio (April 29, 2009)
  • Sony Pictures Digital Productions and Animation Mentor Put New Twist on Old Tradition With State-of-the-Art Online Mentor Program (April 24, 2009)
  • Sony Electronics Expands Digital Cinema Deployment Agreement With Sony Pictures to Cover Asia (April 24, 2009)
  • Sony Pictures Releasing International Unveils Its First Major Feature Film Online Twitter Game for ’Terminator Salvation’ (April 21, 2009)
  • Wheel of Fortune spins on the Playstation 3 (March 25, 2009)
  • Sony’s Playstation Portable to broaden its games library (March 10, 2009)
  • Sony adds the possibility to view trophies online (March 6, 2009)
  • Sony releases new HDV camcorder, recording unit and accessories (March 3, 2009)
  • Sony’s HOME future details revealed (March 3, 2009)
  • Video Game Everquest 2 Provides New Way to Study Human Behavior, Says U of Minnesota Researcher (March 2, 2009)
  • HOME and Playstation Network popularity grows (February 25, 2009)
  • How Low Can You Go: XB Series Headphones by Sony Deliver the Lowest Ever Bass (February 13, 2009)
  • Sony Creative Software Introduces New Download Delivery Option for All Products in Its Royalty-Free Content Line (November 20, 2008)
  • SONY BMG Commercial Music Group Launches A Free Music Supervision Tool for Filmmakers (September 18, 2008)
  • New VAIO ’Super-Notebook’ and Digital Home All-in-One Systems Focus on High-Definition and Blu-Ray (September 16, 2008)
  • Sony Creative Software offers free Vegas Pro updates for Broadcast workflows and ans 64-bts video editing (September 15, 2008)
  • Sony Student Film Contest Deadline Approaching (September 9, 2008)
  • Sony Unveils Wireless Multi-Room Audio System for iPod Players (August 27, 2008)
  • Sony officializes the PSP-3000 (August 26, 2008)
  • Sony Introduces XROSS FADE: A New Spin on a DJ-Style Music System (August 22, 2008)
  • Street Fighter II punches it out with images (July 24, 2008)
  • Leaders in Consumer Electronics and Wireless High-Definition Video Delivery to Discuss the Next Wave of Wireless Audio/Video Connectivity (July 24, 2008)
  • Tommy Hilfiger and Sony BMG Unveil TommyTV, a New Online Global Music TVConcept (April 17, 2008)
  • Sony Unveils Next Generation of Compact LCD Business Projectors (April 4, 2008)
  • Vancouver Film School Shifts to HD with Sony (February 25, 2008)
  • Skype introduced on the Playstation Portable (January 8, 2008)
  • Sony Online Entertainment Selects Kynapse for its DC Comics Based Action Video Game for the PC and PS3 (November 20, 2007)
  • Vizio Who? Once Unknown Company Becomes Leading LCD-TV Brand in North America (August 21, 2007)
  • Sony Adds Kick to In-Stadium Displays at BMO Field (August 7, 2007)
  • Sony continues the evolution of XDCAM tapeless acquisition technology (May 9, 2007)
  • Sony Further Strengthens HDCOM line-up with HDW-790 camcorder (May 9, 2007)
  • Sony offers accelerated data transfer with Memory Stick Pro-HG Duo media (May 3, 2007)
  • Sony Creative Software Partners With AMD to Host Technology Preview of 64-Bit Version of Vegas NLE Software (April 17, 2007)
  • Oshawa’s General Motors Centre scores big with Sony broadcast implementation (March 21, 2007)
  • New Arena Turns to Sony for State-of-the-art Control Room (March 20, 2007)
  • Sony continues to expand SXRD 4K Projector lineup for movie theatres (March 19, 2007)
  • Sony Selects Microspace to Deliver First 4K Digital Feature Via Satellite (March 13, 2007)
  • Sony Introduces Muteki: A Party in a Box (March 1, 2007)
  • Sony Sets Price and Shipping Date for Bravia Internet Video Link (February 28, 2007)
  • Sony Launches Its First Bluetooth Personal Audio Systems (February 28, 2007)
  • Sony Computer Entertainment Europe Announces Hardware Specification of PLAYSTATION3 for Europe (February 23, 2007)
  • Sony DADC Announces Production Technology Initiative for Blu-ray Disc Dual Layer (February 16, 2007)
  • Sony Chooses PacificNet to Develop E-commerce Platform for Sony Style E-commerce Initiative (January 12, 2007)
  • Sony Computer Entertainment America Unveils PLAYSTATION 3 to Hollywood’s Elite (November 9, 2006)
  • Sony Electronics Announces United States Creative Agency-of-Record (November 7, 2006)
  • Sony Announces PLAYSTATION Network Offers Unrestrained Community and Creativity (October 20, 2006)
  • Sony Announces Peripherals to Accompany Comprehensive PS3 Package (October 20, 2006)
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