Report: PS4 Cost $381 To Build

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A new IHS report states that Sony’s manufacturing cost for the PS4 was $381; just $18 shy of their retail price for the system.

This price is according to a teardown analysis of the system in which the following components are priced: AMD chip (350 square mm based off 28-nm tech) – $100; 16 memory chips – $88; Seagate HDD – $37; Marvell and Skyworks wireless chips w/optical drive – $28; DualShock 4 controller – $18.

“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,” said IHS analyst Andrew Rassweiler. So in the end the profits are going to come from the games, PSN, and controller sales. “If your cost is within $10 to $20 of the retail prices, there’s very little chance you’re making a profit on the console.”

via AllThingsD