iSuppli: Sony close to breaking even with PS3 Slim

The launch of the new line of PlayStation 3 units has been well-received and well-sold, but apparently, Sony is still losing money for every PS3 they sell. This is the report coming from applied market intel, iSuppli. On a more positive note, they are closer to breaking even now than ever before.

The launch of the new line of PlayStation 3 units has been well-received and well-sold, but apparently, Sony is still losing money for every PS3 they sell. This is the report coming from applied market intel, iSuppli. On a more positive note, they are closer to breaking even now than ever before.

“Since the introduction of the PlayStation 3 in late 2006, Sony has subsidized the price of every console sold, a deficit the company has made up for with game sales and royalties,” said iSuppli teardown services director and principal analyst, Andrew Rassweiler.

He goes on:

“However, with each new revision of the game console hardware, Sony has aggressively designed out costs to reach the hardware and manufacturing breakeven point as quickly as possible. The latest version of the PlayStation 3 manages to further reduce the loss, even with the U.S. price of the console having fallen by $100 during the past year.”

As of December 2009, the total manufacturing cost of a 120GB PS3 Slim is US$ 336.27 – and with the US$ 299 price point, Sony still loses US$ 37 per unit sold. Fortunately, prices for the console’s parts are expected to “decline significantly in 2010.” “In light of these factors, the PlayStation 3 probably is already at or near the tipping point for profitability,” Rassweiler said.

Image courtesy of iSuppli.com

[via iSuppli]