Obsolescence Insurance, a New High-Margin Business for EMS Companies
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After selling many revisions of its PlayStation 3 consoles at a loss, Sony is nearing the break-even point on the PlayStation 4 hardware costs, according to preliminary results from the Teardown Analysis Service at IHS Inc. Together, component and manufacturing costs are lower than the PlayStation 4 console's $399 price tag. However, when other expenses are added, Sony will still take a loss on each console sold, said IHS. Sony is expected to break-even or make a profit in the future as hardware costs fall as part of normal declines. Here are a few key findings from the IHS teardown. For more details, click here.
Sony's cost for the PlayStation 4 is estimated at $18 lower than the $399 price tag for the console.
The PlayStation 4 controller costs nearly $5.00 more than the PS3 controller.(Click the image to enlarge.)
A summary of four major suppliers and components supplied for the PlayStation 4. (Click the image to enlarge the chart.)
The PlayStation 4 HDD costs $1 less than the HDD in the PlayStation 3, despite an increase in capacity from 120 GB to 500 GB. (Click the image to enlarge the chart.)
The AMD processor includes an eight-core Jaguar CPU and a Radeon GPU, adding $100.00 to the BOM. (Click the image to enlarge.)
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