In the case of the Playstation 3, component costs for most of the different versions of the console were in excess of the retail prices, in some cases by more than $100, according to IHS.
"Although Sony brought the PlayStation 3's costs down significantly during its lifetime, the company's intent was never to make money on the hardware, but rather to profit through sales of games and content," said Andrew Rassweiler, senior director, cost benchmarking services for IHS.
"This time, Sony is on a greatly shortened path to the hardware break-even point, or even profitability, with its cost-conscious PlayStation 4 design," he added.
(Read more: PS4 and Xbox One neck-and-neck in games console race)
The biggest area of cost reduction is in the optical drive, due to the significant price erosion in the product over the past four years.
The cost of the device - which uses a laser to read or write information on a disc - is $28, compared with $66 in the CECH-2001A PlayStation 3 model, which was shipped in 2009.
Despite reports of glitches in the recent days - including a blinking blue light on the new consoles - Sony has seen robust sales of its PlayStation 4 since its launch in North America on November 15.
(Read more: Blue-light problems for Sony's PlayStation 4)
It sold 1 million units in the first 24 hours of availability in the United States and Canada. The company is expected to release the console in Europe and Latin America this Friday and in Japan next February.
—By CNBC's Ansuya Harjani; Follow her on Twitter:@Ansuya_H