The price of a gaming console is generally the highest at the time of its launch. As the initial euphoria dies down, the prices generally follow a downward trend, in order to achieve greater penetration into the market. The same trend is reflected by PlayStation 3 prices. The major reason behind this is that the latest model of the PS3 features a cost-reduced design, thanks to integration and some key changes in components from earlier versions.
So, the global cuts in PlayStation 3 prices are not just a part of marketing strategy. They are, in fact a result of lower costs being incurred by the manufacturers. Here’s an in depth look into the PS3 pricing.
• The latest version of the PS3, requires a total expenditure of about $450, which, is a mammoth 35% less than the previous versions. This cost does not include royalty and software expenses.
• This can be attributed partially to the normal pattern of component prices coming down over a period of time.
• But more importantly you should consider the fact that the PS3 now requires only 2820 individual parts instead of the earlier count of 4048! This had led to a dramatic reduction in the cost of production.
When you consider the fact that the PS3 was being sold at a substantial loss when it was first launched, you will understand that this cost reduction is really important for the manufacturers, in order to cut their losses.
At a component level, the price of the PS3 has come down because of:
• The new integrated circuits, which have helped reduce the number of discrete components in the machine.
• The new power supply, priced at $21.50. When you compare this to the earlier $30.75 component, you will get the picture quite clearly.
• The PS3 has also switched to a new electromechanical system, which is priced at 90 cents, while the earlier component was priced at $2.35!
• The latest IBM Cell Broadband game engine, which costs $46.46 as compared to the earlier engine which cost $64.40.
• The latest NVIDIA reality synthesizer priced at $58.01, down from $83.17 earlier.
The real beneficiaries of reduced PlayStation 3 prices have been gamers all over the world, who now find it a lot easier to fit the PS3 in their budget. If you consider all the love and support the PlayStation brand has got from its millions of fans worldwide, you might say that Sony has rewarded it finally.
So, take advantage of the newly slashed Playstation 3 prices and get yourself a console!
Tags: PS3 prices