Sony Slash PS3 Build Costs 70% But No Price Cuts

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The Sony Playstation 3 sold in Australia is among the most expensive in the world at $699. Now it has been revealed that while Sony Computer Entertainment has been stinging Australians the Japanese company has managed to lower the build cost by up to 70%.

At a briefing last week, when Sony announced that they are still bleeding millions in losses, a senior executive of the ccompany, Sony CFO Nobuyuki Oneda, said that since the 2006 launch of the PlayStation 3, Sony has stripped back the build costs for the console by about 70 percent.

He has also hinted that further cuts were expected in coming months.

In the USA the 80G PS3 console is selling for $349 in discount stores and $399 in the Sony store.  Taking current exchange rates into consideration this translates to around A$430 in Australia dollars.

The PS3 80GB same model is $699 in Australia some $269 dearer than the same US model.

In the USA where the PS3 Console is perceived as expensive, Sony has been reluctant to reduce the PS3 price tag below the $399 price point, as the company seeks profitability. Sony reported this week that unit sales of PS3 dropped to 1.1 million during the quarter from 1.6 million sold for the same quarter a year ago.

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