PS Vita Components Cost USD 160 Only

January 21, 2012 - 5:50am

The guys at UBM TechInsights have dissected the PlayStation Vita and calculated its components cost to discover that they add up to $159.10, almost half of the handheld's U.S. retail price of $299.

The majority of the cost is spent on the display and touchscreen which cost $50, compared to the handheld's quad core processor which costs a meager $16.

Of course there are other costs incurred by Sony to assemble, produce, market and deliver the PS Vita to stores, but even with factoring those costs in it is reasonable to expect that the company is making a profit of around $100 per unit sold.

Hopefully, Sony will cut PlayStation Vita price within a few months of its launch, just like Nintendo did with its 3DS.

Make sure to check the images tab to see some of the most interesting PlayStation Vita color coded board shots (teardown and shot via TechInsights).

Comments

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Sony Tries To Rip Us Off

well I wasn't Surprised. Sony Is always trying to rip off the Public. First they try and sell us a PS3 and say It's price is so High because its 3 times as powerful as an Xbox360 now they try and sell us a Psp on steroids with a few flashy buttons for almost double. I think I'll just buy an XBOX360 because I know they are priced fairly. Some even tell me the XBOX360 has better graphics and more more games. Ok, I've made up my mind, I'm selling my psp, not going to get a Vita and now going to join the Microsoft xbox360 family. I know they won't rip me off and try and charge me hardware at such outrageous prices like S.O.N.Y.

this guy is legend

Exacta. There has to be a mark-up. Businesses need to make money. Think about all the people employed by Sony, or how much it costs to ship the product. Then how many people are employed by the distributors... and finally the retail employees. You want to complain about something? Complain about how RPG's don't take several months to finish, anymore. Because, that's my gripe about the game industry.

Reasonable..

To say the final product is suposed to be 250-300 dollars there not making a great deal of profit when you think about R&D for projects like this plus marketing and staff etc. Take ipods for instance, they are generally 100%+ on top of production costs.

Flawed argument.

Calculating the cost of the components is one thing but what about all the R&D costs that went into the development of the PS Vita? The price will surely come down but most likely only when Sony has made their RoI.

Yup, much as I dislike Sony

Yup, much as I dislike Sony the article doesn't take R&D costs into account. If they want to really take it a step further they could look at the meager costs of the raw materials that go into each component and disregard real world manufacturing costs and find out the thing is made from 30c worth of shit they pulled out of the ground.

PS Vita's Left Out Features

Sony needs to bundle "Uncharted" with the PS Vita instead of any other game. Also, Sony needs to fix the PS Vita up to be able to operate as a cellphone. Finally, Sony needs to enable the PS Vita to be capable of reading an external USB thumbdrive or harddrive. What's the point of blowing $250 to $300 on something that is proprietary and Android-challenged?

hi

you are right if they ps vita as phone we will ready to pay 300 $ because at that time many patents come in the picture clause which increases cos.t

alright

You're missing the point here. It's not ment to be a phone, and I doubt it could be one either. Sony will not bundle one of the best (and most expensive) lauch lineup titles right off the bat. Making it able to read thumb drives would increase the bulk for no reason. What would you do with a flash drive sticking out of it on the go? Lastly I don't think you want to hold this up to your face with a flash drive jutting out the side to call people. And also, considering what Sony is giving us here, around $100 profit is a reasonable price. Compared to the 3DS, it's components cost only $100 to produce, which means in the first few months Nintendo was making more than $160 profit a unit.

I don't see the problem here

I don't see the point in discussing things like this. Of course they are going to sell way above cost at first. People think something is worth only the cost of its components, but it isn't. Did you forget how much money went into R&D before this became a product? They have to cover those costs as well. They aren't really selling a lot over cost, because the true cost includes R&D, and they are probably barely making a profit (if at all) over that true cost.

Meh

Its people like you that make me giggle, covering costs has nothing to do with economics. The stuff they teach you in school is good for lower than basic math. That sadly is not how corporate minds work, a single idea generates billions regardless the end costs. What they are essentially capitalizing on is far more sinister than the electronics that go into it. The average cost of a semiconductor would blow your mind away, long term is how they think, sustainability is where the market is. Regardless what you or I argue today, they will be capitalizing big bucks on something without market value where a loss wouldn't even dent their returns.

In Soviet Russia

I enjoy to read the true Soviet logic and mathematics you speak, comrade. The capitalists will never understand the final solution to world domination. May you always give all your profits and fortune to our country. For the glory of the motherland!

lol wow, now im even less

lol wow, now im even less interested in the vita. Even nintendo is selling the 3ds at cost or a slight profit, but not at cost + $100 like sony. Well Nintendo DID sell their hand held for $250 at the start and quickly cut the price so lets see what happens with the vita.

Ps Vita components?

Heylo, In observing the reference distancing into common sense. The reveal to this written report-- a component is costing an amount does not distance truth. The focus to this article is to distance truth in an Intel i7 processor does not cost more than this amount as this article has written. There are websites online selling 478 and 775 pin intel at less than 3/4 the cost at initial release--meaning a processor is the truth to this article. The screen captcha says lielow?

Missing some details here

So the components cost just shy of $160. So there is no cost in assembling, shipping to wholesalers, boarder customs fees, wholesaler markup, selling and shipping to retailers, or retailer markup...lest we forget our most favorite taxes. Sony probably makes less then $50/unit and will more then likely lower the price anyways when they find PS Vita sales are low to the point where they lose money on the sale of each unit.

capitalism will fall

complain all you want, but the worlds a crumbling, and its mostly due to N.A poking around in others Affairs and getting things all fucked up. WW3 is a coming ( deny this is to accept your ignorance) get ready to defend yourselves cuz its gonna be the world vs the crappy states of failmerica.

Capitalism iz teh sux

Maybe Sony should throw supply-and-demand out the window and just give away their Vitas for free. Perhaps they should give away all their games for free, too. Megagames could even set the example by removing all of this crappy advertising from their site and just operate at a financial loss. That's a sound business model, amirite?

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