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Taken apart PS3

In a push to make the PlayStation division of Sony profitable they have reviewed the makings of the PS3 to look for optimizations. The newest PlayStation 3 console costs Sony $448.73 to produce rather than the $690.23 it previously cost them.

This of course raises the question, is Sony going to lower the price of the PS3? This seems like it could go either way. In a market like this, it would make sense to minimize losses. But, for Sony may have to make the cut to compete with the Wii and XBox.

I believe it will be the latter because the Playstation division has lost $3.4 BILLION in the last 2 fiscal years. What makes matters worst is that November sales of the PS3 dipped 19%, while the XBox was up 8.6%, while the Wii *more than doubled* its sales. It can be argued that the other consoles are on different playing `fields`, but at the end of the day if your `field` is losing money… move.

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