PS3 production costs down by 70%

Sony has revealed that the cost of producing new PS3s has dropped by roughly 70% since the console launched in 2006.

The figures were announced by Sony CEO Nobuyuki Oneda during a conference call for overseas investors.

According to Total Video Games, Oneda said: "We don't disclose how much of the PlayStation 3, specifically the cost deduction, was achieved during the past two years. But that is on schedule."

Oneda later confirmed that the machines are roughly 70% cheaper to produce, which is thought to have put each console's manufacturing cost at around £140.

The 80GB PS3 currently retails at £299.