Afternoon:
14°c
Sony cuts the cost of making PlayStation
30.12.08
Consumer electronics giant Sony has reduced the cost of building the PlayStation game console by 35%, paving the way for a price cut next year.
Industry researcher iSuppli says the latest PlayStation 3 console costs Sony $448.73 (£308.79) to produce, down from $690.23,
The machine has 30% fewer parts than earlier versions. Sony has been lagging in the game-consoles field. US sales of the PlayStation 3 fell 19% in November from a year earlier while purchases of the Nintendo Wii more than doubled and Microsoft sold 8.6% more Xbox 360 consoles.
Falling costs bring Tokyo-based Sony closer to breaking even on producing a PS3, which sells for $399 in US stores and £300 in the UK.
US consumers have this year bought 2.8 million PS 3 consoles, eight million Wii consoles and 3.3 million Xbox 360s.
Sony chief executive Howard Stringer wants Sony's games division to be profitable in the year ending March 2009. In May, the company predicted the unit's ability to make money would help drive a 20% rise in operating income.
The PlayStation division lost $3.4 billion in the past two fiscal years as the flagship player was outsold by Wii.
