Sony Reportedly Struggling With PS5 Pricing Over Component Sourcing

Saturday, 15 Feb, 2020

A report from Bloomberg has suggested that Sony's next-generation PlayStation 5 console may be getting expensive to make due to supply issues. However, according to people with knowledge of the matter, Sony is "taking a wait-and-see approach" with the PlayStation 5.

For comparison, the PlayStation 4 retailed for $399 United States dollars and was estimated by IHS Markit to cost $381 USD to manufacture.

But if Sony is indeed struggling to source cheaper components, this may narrow the company's options on how flexible it can be.

Bloomberg cites "people within the PlayStation business" who said a key factor in determining the price point of PlayStation 5 will be how Microsoft prices Xbox Series X. This generation hasn't had almost as many of those devastating console crashes, but PS4 owners are all too familiar with their console sounding like a jet engine when it gets overworked.

This is a huge year for gaming with Sony's PS5 and Microsoft's Xbox Series X both scheduled for late 2020 release dates. The website iSuppli estimated that the two variations of the console cost Sony over $800 each to manufacture, resulting in the company selling the consoles at a considerable loss. However, we're expecting the PS5 to be at least $499 if Sony wants to make some semblance of a profit. Gamers will be happy to hear Sony opted for a cooling solution ensuring better heat dissipation, but in so doing, the cost rose to a few dollars per console.

The ongoing coronavirus outbreak has had no impact so far on preparations for PlayStation 5 production, they said.

During a presentation by Sony Interactive Entertainment past year an executive showed off the PlayStation 5's super fast load times, which are enable by an all new solid state drive built into the device.

Sony has a lot planned for the next generation (including a new version of PlayStation VR for the PS5, according to the same report), but are in a highly precarious situation with this price war standoff.

Microsoft and Sony are both expanding their respective online subscription services, revenue from which may allow them greater flexibility on hardware pricing. However, Sony is thought to be waiting longer this time on setting a price.