playstation 5 price

Sony’s Reportedly Struggling to Set PlayStation 5’s Price Due to Scarce and Expensive Parts

Reportedly, scarce and expensive parts are proving a challenge for PlayStation 5‘s manufacturing costs. A source with knowledge of the situation claims such issues mean the system currently bears a $450 price tag per unit for Sony. Considering PS4’s manufacturing cost of $381 and its $400 retail price, applying this same gross margin to PS5 could result in the new console’s retail price sitting at $470.

A report from Bloomberg, which cites “people with knowledge of the matter,” suggests nothing is finalized as of yet. This is despite Sony typically having a retail price locked down by February of a new system’s release year. One key struggle on this front concerns an unreliable supply of DRAM and NAND flash memory. At present, these components are in particularly high demand, due to a wave of smartphones preparing for another iteration of releases.

Part scarcity has already forced Sony to set aside plans for features like a mirror-less camera, which was intended to become available this year. The limited DRAM supply caused the cancellation, according to Bloomberg’s sources.

People informed about the company’s operations say Sony has most of PS5’s components ready to go. Even the cooling system is accounted for, though it bears an atypically high price of its own. Bloomberg reports Sony wants to “lavish more on making sure heat dissipation from the powerful chips housed inside the console isn’t an issue.”

As it was previously alluded to, Microsoft’s plans for Xbox Series X will serve as another important aspect of how Sony prices its new machine. Some members of Sony’s gaming division supposedly think PS5 should be sold at a loss to match the next Xbox’s cost if necessary. Regardless, Sony CFO Hiroki Totoki is eager for more PS5 details to surface. Internally, pressure from Totoki has allegedly led to some dismay.

Recent estimations suggested the coronavirus outbreak won’t affect PS5 production. Apparently, Bloomberg’s sources have confirmed the same. Still, the Japan-based conglomerate remains unsure of how many PS5 units it will manufacture during the console’s first year on the market.

Sources familiar with the matter also claim Sony is preparing to launch a second version of its PlayStation VR unit. If true, another PSVR model may hit stores after the PS5 releases. However, specifics currently remain under wraps.

[Source: Bloomberg]