PlayStation 4 costs Sony $381 to make, according to IHS report

Tuesday, 19 November 2013 16:56 GMT By Stephany Nunneley

PlayStation 4 costs Sony $381 make, which according to a report on AllThingsD, is just $18 under the consumer cost of $399.

The information stems from a teardown analysis from research firm IHS and will be released sometime today. The AMD processor cost Sony $100 and the 16 memory chips $88 while the Seagate hard drive was $37. Wireless Marvell and Skyworks chips and the optical drive cost the firm around $28.

“This [350 square millimeter chip] is just gigantic,” said IHS analyst Andrew Rassweiler in the report.“It’s almost three times as big as the next biggest chip we’ve seen.”

IHS also said the DualShock 4 controller cost Sony $18 to build and includes: a motion sensor chip from Bosch, Qualcomm Bluetooth chips and and audio chip from Wolfson Microelectronics. Since Sony takes a cut on PS4, it makes up for it with DualShock 4 costing $60 when sold separately.

IHS figured it cost Sony $805 to build PS3, which debuted at retail for $599 and like the last-gen console, Sony will be making up the profits through its games.

PS4 is out now in North America and releases in Europe on November 29.

Via Gamespot.