Sony's PlayStation 4 Just Breaking Even On Production Costs

Sony's PlayStation 4 Just Breaking Even On Production CostsImage Via: Redesign Revolution

Research firm IHS took apart the PlayStation 4 in the style of Sony’s own Dexter-like deconstruction to find the price of each individual component of the next-gen console. It determined that the parts cost of the PS4 is $381, just $18 shy of the retail price.

Consoles, unlike many high-end electronics have traditionally been sold at a loss in the hope that companies will profit from game sales and media delivery. While it still seems crazy to sell a console at a loss consider the 2006 release of the PlayStation 3, which cost an estimated $805 to build and retailed for $599.

“If Sony could build the PS4 for a lower cost it would do so, but if history is any indicator, it would also lower its retail price,” said IHS analyst Andrew Rassweiler, who oversaw the teardown.

There has long been an unhealthy relation to selling consoles at a loss and games at an ambiguous margin that are subject to the used and resell market. This latest generation of consoles offer a new way to deliver media and games quickly as both Microsoft and Sony hope to expand the number of console owners. More consoles, more games sold. What do you think? Would you buy a more expensive console that had cheaper games?

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[Via All Things Digital]

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Tags: sony, playstation, playstation-4, video-game-industry, next-gen-hardware
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