Speaking during a conference call following its Q1 financial report, Sony Corp CEO and Executive Vice President Nobuyuki Oneda revealed that the cost of manufacturing its PS3 console have dropped by 70 per cent.

"The cost reduction since we introduced the PS3 is very substantial and this is on schedule," said Oneda. "We don't disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule."

He added that the figure is "about 70%, roughly speaking".

Precise manufacturing costs aren't known, although a figure of $800/£485 has been commonly accepted for the cost at launch. With a 70 per cent reduction applied that figure shrinks down to £146, around half that of the current retail price of the 80GB PS3.

It's widely expected that Sony will announce a PS3 price cut and the PS3 Slim at its Gamescom press conference next month.

Via TVG