The PlayStation 4 costs $381 for Sony to build, $18 under its retail price of $399. The figure comes from a hardware teardown by research firm IHS that included the bill of materials, which amounts to $372, as well as per-unit cost of assembly in the assessment. The teardown notes that the system's processor and memory account for about half of the cost of the entire console at $188, and that the PS4's 500 GB hard drive is $1 cheaper than the 120 GB one found in the PS3, thanks to the "major decline in HDD costs during the past four years."
Sony Computer Entertainment CEO Andrew House said in August that the system "will not generate anything like the losses we did for the PlayStation 3," which amounted to $3.5 billion in 2007 and 2008, after the PS3 launched in November 2006 for $599. IHS' teardown of the PS3 at the time found that the system cost Sony $805, and the company still lost roughly $40 per system as of December 2009.
The PS4 is off to a good start, as Sony sold one million units in the console's first day at retail. Sony addressed a few issues with launch systems, estimating that the number of problematic PS4 consoles is less than one percent of those shipped.
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