Sony teams up with Foxconn to produce low-cost PlayStation 3

Known for its music station and Walkman mobile phones, Sony is planning to reduce the cost and selling price of the Playstation 3. Sony will tap an additional manufacturing partner to make the hardware of its latest console. Recently, Sony has partnered with Hon Hai Precision Industry, perhaps better known as Foxconn to produce lower-cost PlayStation 3 consoles. After the launch of the PlayStation 3, Sony relied on ASUSTek as the main manufacturer of its console hardware. It would be the new experience for Foxconn to produce the PlatStation 3, but it is no stranger to make consoles for Sony. Foxconn is also manufacturing Xbox 360 components for Microsoft and Wii parts for Nintendo. Analysts are expecting that the current $599 80GB console will drop to $499, once supplies of the 60 GB machine are completely depleted. While there are some other rumors that Sony will not drop the 80GB machine down $100 to $499, but it will introduce a new entry-level 40GB console, which will come in at another $100 less at $399. Image: TomShare hardware