PS4 teardown reveals cost to manufacture is $381
- Posted November 19th, 2013 at 10:11 EDT by Paul Kelly
With the PlayStation 4 now out in the wild, many have wondered how much profit/loss Sony is generating from its new home console. Now, it seems like we have an answer.
IHS, the same research firm that revealed the PS3's initial production cost ($805), has stripped down the PS4 and revealed it costs $381 to manufacture, but that doesn't include shipping costs. The most expensive component of the PS4 is unsurprisingly the 8GB of GDDR5 RAM, which comes in at $188, nearly half of the total cost. The cheapest is actually the DualShock 4 controller, which costs just $18 to make, and let's not forget that separately the peripheral retailss for $60 so there's a good profit margin there.
Speaking to All Things D, IHS' Andrew Rassweiler commented, “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". Things are looking better for Sony than at the PS3 launch and with a game or accessory sale to go with any given PS4 sale, the total cost should net Sony a profit.----