• Hey Guest. Check out your NeoGAF Wrapped 2025 results here!

PS Vita 3G BoM is $159 (this is not the full cost of production)

EuroGamer said:
What a difference six months makes. In June last year Sony boss Kaz Hirai proudly took to the stage at E3 to announce that the Vita would retail for $250 (or $299 for the 3G version) - a figure that was generally greeted with enthusiasm by both press and gamers alike. Meanwhile, the considerably less powerful 3DS was floundering at around the same price, just a few months after its launch.

Fast forward to January 2012 and the 3DS is flying off shelves following an unprecedented pricing rethink while the Vita has got off to a miserable start in Japan, with numerous internet commentators already starting their 'cut the price' catcalls.

So, one month ahead of the machine's global launch, we've enlisted the help of technical intelligence experts UBM TechInsights and taken a screwdriver to Sony's new portable in an attempt to divine two things - whether you're getting good value for money, and whether Sony has left itself any room for an emergency price drop should the Western launch belly-flop.

UBM's VP of business intelligence, Jeffrey Brown, tells us that the total bill of materials for the 3G-enabled version of the system comes in at an estimated $159.10 - that's around £102.90. That figure breaks down as follows:

Display and touchscreens: $50
Battery: $3.60
Cameras: $3.50
Wi-Fi/BT/GPS: $3.50
NAND: $6.00
SDRAM: $9.25
Processor: $16.00
BB+XCR: $16.25
Non-electronic: $11.00
Other: $30.00
Supporting materials: $10.00


For more on UBM's findings, head on over to its official site.

Source: http://www.eurogamer.net/articles/2012-01-20-is-the-playstation-vita-worth-230


The Company that ripped the Vita open: http://www.ubmtechinsights.com/teardowns/sony-playstation-vita-teardown/?pi_campaign_id=13825
 
How much does actually manufacturing it and shipping add? I have a feeling they're still taking a loss all things considered.
 
So Sony takes a loss on a tablet that they dropped $100 in price... and can't sell a profitable handheld because it's too expensive.
 
How much does actually manufacturing it and shipping add? I have a feeling they're still taking a loss all things considered.
Yeah I feel like this isn't taking everything into consideration.

On top of that, considering that Sony were taking hits on the PS3 big time just to get the damn thing into peoples homes I'm not exactly going to kick up a fuss that they could potentially be making a profit for a change.
 
Dont forget to add the cost of marketing, shipping, profit margins and taxes. I dont think they are making so much money out of the hardware.
 
I find this hard to believe as Nintendo stated they were losing money on 3DS once they dropped to 169, and it should be way cheaper than Vita.

Of course, BOM isn't the total cost of the product, doesn't include manufacturing, shipping, etc.
 
This figure will be quoted forever and ever by people ignoring its meaning.
 
Making up for R&D plus packing and shipping to stores plus marketing. I'd say they'd be hard pressed to be profiting much from hardware sales.
 
These kind of teardowns are silly.

Its almost impossible for an outsider to factor in the costs of the actual manufacturing lines/ workers, shipping, years of R&D, and more which all reflect on the real cost to Sony.

Instead, we get a thread of people thinking X company is making Y profit on every unit and forgetting about retail markups.

EDIT: I wouldn't factor marketing into the price. That is a giant can of worms and a corporate decision not an engineering one and one that doesnt directly effect the true cost per unit.
 
wow it costs $159 to make, where are they getting the slaves to make/ship/market etc. this at 0.01 an hour, probably Foxconn
 
Good, if this is right it is about time Sony made money from the get go for once and not end up sucking costs like on the PS3 for years, even if this doesn't account for a lot of things.

Much easier to price cut something in a year when you are making money off it from the start, sure, I would love to have it cheaper and slightly more affordable, maybe less of the rip off memory cards, but at least they are learning now.
 
marketing costs...oh forgot that.

Not including that is absurd. $159 is misleading.

The thread title is already misleading and many people will never even try to understand what this actually means. That annoys me a little.

It's not misleading at all. $159ish to manufacture the hardware.

Marketing, R&D, Employment for factory lines and all that jazz is a totally different figure unrelated to the breakdown of the actual hardware ...
 
I just hope they don't go the cheap route on the PS4.

Do it like a man and take a loss on each unit sold uncle Sony!!!
 
It's not misleading at all. $159ish to manufacture the hardware.

Marketing, R&D, Employment for factory lines and all that jazz is a totally different figure unrelated to the breakdown of the actual hardware ...

Don't disagree with you .. I think folks just see Vita .. $159 = what?
 
Employment for factory lines and all that jazz is a totally different figure unrelated to the breakdown of the actual hardware ...
Not for Foxconn

Granted these animals do give them a headache
A6a0R.jpg
 
It's not misleading at all. $159ish to manufacture the hardware.

Marketing, R&D, Employment for factory lines and all that jazz is a totally different figure unrelated to the breakdown of the actual hardware ...

Not necessarily. Correct me if I'm wrong but this is just the price of the parts. Total manufacture cost would be quite a bit higher.
 
It's not misleading at all. $159ish to manufacture the hardware.

Marketing, R&D, Employment for factory lines and all that jazz is a totally different figure unrelated to the breakdown of the actual hardware ...

But it's not 159 to manufacture it. It's 159 for the materials.
 
Top Bottom