According to research firm iSuppli, the first gen PS3 cost US$690.23 to produce, based on mid-2007 component prices.

Based on October 2008 component prices, the PS3 now costs $448.73

PS3 future looking bright

Which means two things. Firstly, Sony's console is still being sold at a loss (US RRP is $400), albeit a notably smaller loss than in 2007.

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