Deciding a price for the PS5 proving difficult for Sony

midian182

TechSpot Editor
Staff member

Bloomberg reports that Sony usually finalizes a console’s launch price in February of the release year, with mass production starting in the spring. But with the PS5, choosing the MSRP is proving difficult.

IHS Markit estimates that it cost $381 to manufacture the PS4, which sold at a retail price of $399. That would put the PS5’s release price at around $470, making it a lot more expensive than the PS4 Pro, which is $399 but often discounted as low as $299.

One of the biggest issues for Sony is securing a reliable supply of DRAM and NAND flash memory, which is in high demand thanks to smartphones such as the Galaxy S20, which come with a minimum of 12GB of RAM.

It’s been reported that the disruption caused by the coronavirus could impact or even delay the PlayStation 5 and Xbox Series X, but Sony says the outbreak hasn’t affected production, at least not yet.

Consoles were traditionally sold at a loss, with companies making profits from software sales and subscription services. Sony lost billions on the PS3 at launch but made sure the PS4 was profitable. Some at the firm believe it should take a loss on the PlayStation 5 if it means the price is competitive with the Xbox Series X, though others would prefer if it to make a profit like the PS4.

In addition to the expensive flash storage, the PS5’s manufacturing cost will be pushed up by the high-end AMD GPU. Sony is reportedly spending more than usual on the cooling system, too, ensuring all that hardware doesn’t overheat.

The report also states that a new PlayStation VR is being developed and will release soon after the PS5 launches. We've seen in previous reports that the PSVR 2 will be a major upgrade over the current headset, featuring an AR mode, eye/head-tracking tech, and cost $250.

To get our take on what the successors to the PS5 and Xbox Series X will look like, check out the Future of Tech: Consoles feature.

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3volv3d

TS Addict
But yet, I see all these kids walking around with $800 ~ $1000 smart phones...
Don't most people buy a phone on a monthly plan? It's the best way to keep slaves doing their jobs. Plenty of monthly bills.
So perhaps $/£50 a month over 2 years with included ps plus?

I don't care about the price, I want to see backward compatibility, I want access to my full ps3/4/5 catalog via the one machine, as if I was looking at my steam library, with the correct filter options.

The PS Store has always been the worst to browse. It is diabolical.