Hardware changes slash PS3 build cost in half

New chips allow Sony to scale back losses on flagship

We've already seen just how strongly Sony's PS3 is bouncing back off the ropes, especially after recent hardware changes made the machine cheaper to manufacture, but we're only now getting an idea of how much cash the new regime is saving Sony per console.

Alterations to the hardware inside the shiny black box, such as smaller processors and other components, have taken the cost of building each PS3 from £400 at launch to just £200 now.

Road to recovery

However, Japanese analysts responsible for revealing the figures also suggest that - in spite of Sony's hopes - the games section of the firm will still lose money this fiscal year, moving into the black only late next year.

Nikko Citigroup reckons last year's £1 billion gaming loss will reduce to £715 million this year before turning around in 2009. Investors in the parent company seem to be showing some of the same faith, leading to a sharp increase in Sony's share price in recent days.

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