According to research firm iSuppli, PS3's manufacturing costs are now down 35 percent compared with 2007.
Back then the machine's components cost $690.23, but as of October last year the console cost $448.73 to manufacture.
Sony is therefore still making a loss on every console sold.
However, "PS3 may be able to break even in 2009 with further hardware revisions," iSuppli said in a statement.
More over at GamePro.
By Mike Bowden