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

Tuesday, 19th 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.

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19 Comments

  1. wamp

    jeeez, I doubt it, but if true… that’s some bold decision by Sony

    #1 11 months ago
  2. archaven

    Wrong. When Sony or Microsoft mass purchase the cost is much, much lower.

    #2 11 months ago
  3. EdgizAwesome

    @2 true as well as them charging €400 in europe, (somehow they think $400=€400)xD, they make a decent profit off each unit sold.

    #3 11 months ago
  4. Erthazus

    Chinese knock off with the cheapest possible design decision. With Semi-custom CPU from AMD.

    10 year life cycle my ass.

    #4 11 months ago
  5. mistermogul

    There was a report last week saying it cost just under $300 for Sony to build. I wonder which figure is correct?

    Either way at least they are not losing money per sale like they did with PS3…

    @4 – Your comments get very tiresome, very quickly.

    #5 11 months ago
  6. TenPint

    I’m surprised they’re actually making a profit at all on the consoles this early. Don’t console launches usually put the company into a loss until software sales balance it out?

    Am I talking nonsense?

    #6 11 months ago
  7. Phoenixblight

    @6

    Typically yes but Nintendo until Wii U did the same thing. Sony has finally learned something from Nintendo.

    #7 11 months ago
  8. Dragon

    @PB,
    Except they aren’t. Its probably a loss factoring in R&D, shipping , retailer margin etc.

    #8 11 months ago
  9. Phoenixblight

    @8

    Every time a game is sold with the system they are making a return. THis is a complete 180 of last gen which at launch they were taking a few hundred dollars loss every time.

    #9 11 months ago
  10. ZarraN

    @2 The price is basicly a calculation from a research firm what it would to cost to manufacture the unit. Offcourse Sony has cheaper prices than consumers but this is included in the calculation. I would say it costs Sony a lot more per unit if you include the cost of research & development, support, PR, advertisment, shipments and retail.

    #10 11 months ago
  11. Dragon

    @9,
    Yes, on the total, they may make a profit. Attach rate is about 3 retail games per console without digital sales right now. That is about 90-100 bucks on software. Add to that Plus subs too.

    I meant on only hardware, its probably a small loss. Way better than ps3 era.
    http://www.vg247.com/forum/topic.php?id=50083&page=1#post-99935

    #11 11 months ago
  12. Phoenixblight

    @11

    Right. I am just saying its a complete 180 of last few gens with Sony.

    #12 11 months ago
  13. Fin

    @3

    $400 doesn’t include sales tax, €400 does. So +23% (ireland), you get $490/€360. There’s other charges on top of that (recycling at least, I think), plus transport costs more (over land delivery far cheaper in America), so it probably works out pretty much the same.

    #13 11 months ago
  14. ZarraN

    @3 like previous post said VAT (Value added tax) is not included in USA this will be added to the price. Denmark has 25% VAT which is added to regular price which would make the console cost around 500$. There are also cost to maintaining multiple different currencies and languages cross Europe.

    #14 11 months ago
  15. The_Red

    In other words, when MS removes Kinect to release the $400 Xbox One (And this WILL happen by next May), Sony can go to $350.

    #15 11 months ago
  16. EdgizAwesome

    @13 Right forgot about the lack of tax in the prices of products in the states. I stand corrected :p

    #16 11 months ago
  17. Telepathic.Geometry

    As many others have already said, I’m guessing that they only make a small loss on each console sold, when you factor in the other costs, such as shipping, marketing, R&D, etc.

    That’s good. But when you think about the price of the RAM, it makes you wonder why they didn’t just include more in the xbone. I know that you have to balance things, but it seems like RAM is one of the easier things to just add more of…

    I suppose that the Steambox will have 16GB of RAM and up as standard…

    #17 11 months ago
  18. antraxsuicide

    @15 Highly doubt that. The system’s already really cheap to make if they’re only up charging $100 on a launch system. Add in the fact that all of the multimedia, sci-fi stuff that MS is marketing doesn’t work without a camera, and they’ll never remove it. That’s like a Wii U without the tablet.

    @17
    Because it isn’t necessary when you’re such a power player. The 360 was easily underpowered compared to the PS3, but that’s totally irrelevant if the shunning of the platform would hurt sales. No publisher is going to jeopardize millions of Xbox sales for a bit more resolution. There’s no advantage, and thousands of disadvantages.

    They can afford to ditch the Wii U because Ninty consoles don’t sell 3rd party games anyway, so it’s no loss to upscale out of that range.

    #18 11 months ago
  19. Hybridpsycho

    I thought it was a well known fact that they don’t make any large amounts of money on the actual consoles, it’s everything around it that is profitable.

    This information has been around for years.

    #19 11 months ago

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