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Posted by Chuck Corbin on Nov 20, 2013

How Much Does A PS4 Cost To Make? Not That Much, Apparently

When the PS3 was first released back in 2006, many people mocked Sony for the $499 price tag on the base model, and $599 on the. After all, the Xbox 360 was going for half that, at $299 for a Core system, or $399 for the higher end one. But despite that high price point, Sony was still selling the console for a heck of a loss, at least 100 to 200 dollars per console, if not more.

Fact is, most consoles are sold for a loss when they’re first released. The PS4 is no exception, but according to Sony and and the Teardown Analysis Service at IHS Inc. the loss this time is nowhere near as drastic for the PS4. After factoring in the bill of materials as well as manufacturing expense, the cost to build a PS4 comes in at… $381!

Obviously, that’s a little bit lower than the $399 Sony is selling the system for in stores. They’re still taking a loss though when you factor in transportation costs, taxes, as well as the retailers share for selling each console. Still, that’s a loss that can be made up for fairly easily by just selling a few games and/or accessories with each console. Sony should be sitting pretty, especially once we start seeing some real big-time games showing up on the system!

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