PS3 and Xbox 360 Production Costs Dropping

Both production costs for the PlayStation 3 and Xbox 360 Elite appear to be dropping. Specifically, as blue-laser pick-up heads (PUHs) that the PS3 uses are increasing in supply and decreasing in price, the cost of the console could be reduced by as much as $100, according to Taiwan-based makers of game consoles and components.

In a press release, Sony Shiroishi Semiconductor, a subsidiary of Sony, of April 23 announced an expansion of its monthly production capacity of blue-violet laser diodes; which act as the key component of HD-DVD and Blu-ray discs.

The production cost for the Xbox 360 Elite has dropped to $323.30 according to estimates by research firm iSuppli.

A comparison sheet for cost and production for both the Xbox 360 Elite and PS3 can be seen below:
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