In brief the history is:
Nintendo and Sony worked together to make a console (imagine that) and then suddenly Nintendo backed out. The system was called the Super Disc, was later modified; now known as the Sony Playstation.
How is a playstation made? Like most other consoles and computers.
In a factory, with either machines and/or manual labor. Electronic components are soldered together. Other parts are screwed together.
The System, controllers and cords are then put into a box.