The PlayStation 3 is famously sold at a hefty loss to Sony, but production costs have fallen, the next-generation console now 35% cheaper to make than it was in mid-2007.

According to Kotaku, an iSuppli survey last year found that each console cost in the region of 690.23 USD to make.

But what's the picture like come late 2008? Well, apparently component costs have dropped hugely, the system now costing 448.73 USD, based on the research firm's findings.

Of course, this means the is still sold at a loss in most places, Sony having cut prices in a bid to compete with the - and to a lesser extent the Wii.

New processes do make for a more advanced system, we hear, while continually falling costs should leave more room for further price reductions in 2009. A case of when, not if.

By Luke Guttridge