PlayStation Vita manufacturing cost estimated at $160

According to a product analysis by UBM TechInsights and discussion with Eurogamer, Sony’s PlayStation Vita costs about $160 to build and package. The company did a teardown to reveal the innards of the device, which are led by a Toshiba-produced quad-core ARM Cortex A9-based processor (meaning the PSV’s performance can stand up favorably to current competitors in the mobile market). The most expensive parts are the 5″ OLED display panel and front/back touchscreens, which put a strong face of the device that “provides an incredibly vibrant 16 million colors.”

With no insight into how much retailers in the United States are paying for the units, it’s hard to divine the profits Sony will make per device. Needless to say, $250 retail price does suggest a healthy margin that might eventually be fodder for a post-release price drop. In the meantime, Sony will finally be making money on hardware out of the gate, a feat that their direct handheld competitor Nintendo has refined to a science by now.

Source: Eurogamer, UBM TechInsights