A new report from Bloomberg suggests that Sony’s upcoming gaming console, PlayStation 5, could be costlier than you would expect. The report says that manufacturing a single unit of PS5 costs around $450, which in turn would bump up the PS5’s retail pricing. In comparison, PS4 Pro retails at $400.
The reason for the higher manufacturing costs is the scarce availability of components, as per Bloomberg’s sources. To be specific, Sony is reportedly facing supply issues with DRAM and NAND flash memory for equipping the PS5. The scarcity is due to increased demand for resources in the mobile segment from smartphone giants.
People working at Sony think the company should consider selling the consoles at a loss to match the pricing of Microsoft’s upcoming offering – the Xbox Series X. In the meantime, some executives think Sony should take a profitable approach with the PS5. Sony’s CEO Kenichiro Yoshida believes that the success of a console should be judged based on the number of active users and not by the number of units sold.
As I mentioned earlier, the pricing of PS5 is likely to be based on the price Microsoft sets for its Xbox Series X. Xbox Series X is expected to be announced at E3 2020. Sony usually decides the pricing of its consoles in February but this time, the company is taking a “wait-and-see approach,” according to people familiar with the matter.
Sony’s CFO Hiroki Totoki is striving to provide more transparency on PS5’s release, which reportedly has “caused consternation” (an unexpected feeling of anxiety) internally. “We must keep PlayStation 5’s bill of materials under our control and we need to make the correct number of units in the initial production,” said Totoki at Sony’s recent earnings call.
The report also notes that the novel coronavirus outbreak has not affected the PlayStation 5 launch timeline so far. So, what would be your best guess for PS5’s pricing? Do tell us in the comments section.
