PS3 and Xbox 360, reduction of manufacturing cost is key to victory / defeat

It seems that Sony and Microsoft are fierce battles to reduce the manufacturing cost of each next generation game machine PS3, Xbox 360. If we succeed in reducing the manufacturing cost earlier than the opponent, we are beginning to take pride and cut down on prices, so we both seem to be working seriously.

Details are as follows.
PS 3 and the 360: The race to 65 nm

According to this article, unlike Nintendo's Wii who decided to offer a game of its own line among next generation game machines, PS 3 and Xbox 360 seem to fight a fierce battle because direction is close. And as a key to the victory or defeat, the manufacturing costs of each game machine are closely related. And in order to lower the manufacturing cost of all high-end electronic equipment, it is best to reduce the area of ​​transistors such as CPU and increase cooling efficiency.

For that reason, both Sony and Microsoft are switching the manufacture of CPUs from manufacturing using the currently used 90 nm (nanometer) semiconductor process to manufacturing with 65 nm semiconductor process.

In this way,As I mentioned earlier in GIGAZINE, Research firm iSuppli estimates that Xbox 360 can reduce manufacturing costs from $ 525 (about 60,000 yen) at the beginning of production to $ 323 (about 37,300 yen) and reduce it by 202 dollars, In the case of PS 3, it seems possible to reduce the manufacturing cost from $ 840 (about 100,000 yen) to 800 dollars in the current situation and reduce it by 40 dollars.

· Manufacturing cost
Xbox 360: $ 535 to $ 323 ($ 202 reduction)
PS 3: $ 840 to $ 800 ($ 40 reduction)

Even if this reduction is successful, PS3 will have a loss of just under 200 dollars (about 24,000 yen), as the manufacturing cost will eventually become higher than the selling price (cost break) . in short.

Xbox 360: Benefit from cost reduction
PS 3: Even if the cost is reduced, there is still no profit, the more it sells, the lower the deficit

To that. It seems that referring to the following PDF material about cost per this.

2006.11.21
PS 3 provides super computer performance at PC level price(PDF file)