Research Firm: PS4 Costs Roughly $381 to Make

November 19, 2013 - GamePolitics Staff

Sony's new PlayStation 4 retails for $399, but - according to this AllThingsD report - the system costs $381 to make. This is according to research firm IHS iSuppli, who are old hands at electronics teardowns and cost analyses. The firm tells AllThingsD that the components and the cost of assembly comes to roughly $381.

Two of the most expensive components in the system are the AMD-designed APU and its 8GB of GDDR5 RAM, which cost about $100 and $88 respectively. Other costs include the 500GB hard drive (about $37), the Blu-ray drive ($28), and the controller ($18). The size of the chip also weighs heavily on the cost of making the new console system, according to researchers.

Of course, what is not factored into teardown costs (beyond what's in the plastic case) are retailer margins, research and development, advertising, and shipping costs.

It should also be noted that the magic number of $381 that iSupply comes up with is an estimate.

Source: Ars Technica

 


Comments

Re: Research Firm: PS4 Costs Roughly $381 to Make

So it isnt making any money, right? Because theres other things to take into account on top of that amount, so they must be loosing money on each sale?

Re: Research Firm: PS4 Costs Roughly $381 to Make

Well, it is not unreasonable to assume that they are making some money. According to reports, there are an average of 3 games sold with each console.

http://www.gamasutra.com/view/news/205210/Customers_buying_an_average_of_three_games_for_each_PlayStation_4.php

So it could be reasonably assumed that they are breaking even or making a little bit of profit at that point.

Of course, none of this negates the massive losses Sony took with the PS3. I don't think that ever became truly profitable.

Re: Research Firm: PS4 Costs Roughly $381 to Make

Not bad. When the last iPhone came out, they estimated it was worth about 290, and selling for 650

 
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