Sony’s PS4 Reportedly Costs $381 to Manufacture

By | 3 years ago 

As most gamers already know, Sony is selling their new PS4 console at a loss. With the next-gen console war hitting a fever pitch, the console maker thought it better to come in at an “affordable” price point then to focus on profit.

Despite the knowledge that Sony was taking a loss on each PS4 console, however, we still didn’t know the value of the console when looking at the parts, manufacturing, and nothing else. That all has changed now that the console is available on store shelves, and any consumer can take the thing apart.

According to research firm IHS (via AllThingsD), each PS4 unit costs about $381 to build. That’s only $18 below the cost of the actual console, which retails for $399 in North America.

The report cites the console’s processor and individual memory chips as main contributors to the price, which is typical of these types of devices. AMD’s custom-built PS4 processor comes in at $100, while the 16 memory chips total about $88 of the PS4 cost. As well, the console’s 500GB HDD, made by Seagate, costs $37 and the optical drive $28.

What’s most revealing about the report is the breakdown the DualShock 4, which IHS figures to cost only $28, nearly half of its $60 price tag. Each PS4 unit does come with one DualShock 4 controller, but every additional controller purchase after that puts a little more profit in Sony’s pocket.

It appears that like the Wii U, Sony is counting on game sales for profits and choosing to deliver their PS4 console at the best price point possible. That doesn’t mean the retail price of the console won’t come down in the future, maybe even within the first year of release, but for now Sony is taking a loss on each sale.

That being said, the PS4 hit the ground running last Friday, selling more than 1 million units (to retailers) in its first 24 hours of availability. Since then, the console has been in short supply around North America — save for those exorbitant eBay auctions — but Sony is hopeful the console will be back in stock during the Holiday shopping season.

Do you think it’s a smart move by Sony to keep the retail price of the PS4 as close to the manufacturing cost as possible? Does knowing this make you more apt to purchase a first party game?

Source: AllThingsD

tags:PS4, Sony