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Sony still losing money on PlayStation 3

The old PS3 was even more expensive to make

The new slimline PlayStation 3 may be simpler and cheaper to make than the original PS3, but a new report shows that it still loses Sony money on each console sold.

According to iSuppli, the US model of the PS3 contains parts valued at $336.27 (£207) at today's prices. Given that it sells for $299 (£184), that's still a sizeable loss for Sony to swallow each time it shifts a box.

Blu-ray is costly

The iSuppli analysis shows that the single most expensive of the 2,568 components in the new PS3 is the Blu-ray drive, which it says costs Sony $66 (£41).

However, the red ink is likely to dry up soon, as the report concludes: "Ongoing reductions in component pricing will cause the materials cost to decline significantly in 2010... the PlayStation 3 probably is already at or near the tipping point for profitability."