Since the system's launch, production costs have been reduced significantly as a result of phasing out the Emotion Engine chip and falling hardware costs. The cost of manufacturing Cell microprocessors has fallen dramatically as a result of moving to the 65 nm production process, and Blu-ray Disc diodes have become cheaper to manufacture. As of January 2008, each unit cost around $400 to manufacture; by August 2009, Sony had reduced costs by a total of 70%, meaning it only costs Sony around $240 per unit.

Along with a drop in the cost of hardware, PS3 has gotten cheaper to make because what chip was phased out?