IHS: PS4 costs $381 to make, AMD receives $100 per unit

|By:, SA News Editor

Shortly after Techinsights estimated the PlayStation 4 (SNE) has a manufacturing cost of $296, IHS, which is well-known for its phone/tablet teardowns, has estimated Sony's console has a manufacturing cost of $381, or just $18 less than its retail price of $399.

Sony has said it expects to initially sell the PS4 at a loss, but will turn a profit if a user buys one launch title and signs up for a $50/year PlayStation Plus subscription. Manufacturing costs are bound to drop over time, as prices fall for various components.

IHS thinks CPU/GPU supplier AMD is receiving $100 per PS4 unit. If reasonably accurate, that figure could mean AMD is also receiving ~$100 from Microsoft for each Xbox One produced, given the PS4 and One rely on very similar AMD Jaguar processors.

AMD shares have been pressured by concerns the company sacrificed ASPs/margins to secure its console wins.

Sony recently announced PS4 sell-through passed 1M within its first 24 hours of its North American launch. That puts the company on its way to hitting a target of 5M global sales in FY14 (ends March '14).