They are made from the floor sweepings in Sony's factory.
You don't hear about the failures because most people just buy them and throw them away. I would venture to guess that about 60% of their customers are one-time buyers that try to power it on once and throw it away because it doesn't work. The other 40% either won the lottery or put up with its constant stream of shit because they have a near monopoly. The same is true for 3d printers.