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PS3 production costs down 70 percent

More price cut rumours inevitable

Sony CEO and executive VP, Nobuyuki Oneda, has revealed that production costs for the PS3 have dropped since its 2006 release by 70 percent.

"The cost reduction since we introduced the PS3 is very substantial and this is on schedule," said Oneda in a recent investors conference call.

Oneda was cagey on specifics, saying: "We don't disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule."

But he went on to disclose production costs on the Blu-ray-capable machine are down "about 70%, roughly speaking".

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As noted, although Sony never officially revealed the cost price of PS3s at launch, it was widely believed to cost around $800 or around £430 per unit to produce. That puts current cost price at around £140.

So we may see that £299 price tag on 80GB PS3s fall soon.

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