According to a recent report released by market research firm iSuppli, Sony Computer Entertainment managed to cut the costs for the manufacturing process for its PlayStation 3 game console by 35 percent.

Sony cut the materials cost for the second-generation PlayStation 3 by switching to more advanced components. What this means exactly is that the consoles now use a more advanced version of the Cell processor and also other chips made using a 65-nanometer manufacturing process, which replaced the older 90-nanometer process. The move reduced unit manufacturing costs for each chip and lowered power consumption, allowing Sony to change to a less expensive power supply.

iSuppli explained that Sony also reduced the number of components for the PS3, bringing together in a single part many of the fuctions handled by different chips until now. 

The initial costs for the first-generation model were of about $690, and now, with all the changes brought by the company’s officials, the costs were brought down to about $448.

The competition between Sony, Nintendo Co’s Wii and Microsoft Corp’s Xbox 360 is making each one of the players think of new ways to lower thier costs and come out with attractive offers. Even though the PS3 retails for $399, with about $150 more than the Wii or the Xbox 360, the console remains one of the most popular choices worldwide, with a share of 16 percent of the global videogame shipments. At this point, the distant market leader is Nintendo’s Wii, with a market share of 54 percent.