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PS3 production costs down 35 percent - still selling at a loss

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According to research firm iSuppli, PS3's manufacturing costs are now down 35 percent compared with 2007.

Back then the machine's components cost $690.23, but as of October last year the console cost $448.73 to manufacture.

Sony is therefore still making a loss on every console sold.

However, "PS3 may be able to break even in 2009 with further hardware revisions," iSuppli said in a statement.

More over at GamePro.

By Mike Bowden

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