The Playstation 5, Sony’s next-generation console due out later this fall, is reportedly costing a tad much to produce due to expensive components. In an article on Bloomberg.com from February 14th, technology reporter Takashi Mochizuki states:

“Scarce components have pushed the manufacturing costs for Sony Corp.’s next PlayStation to around $450 per unit, forcing a difficult price-setting decision in its battle with Microsoft Corp., according to people with knowledge of the matter.

The PS4, released in 2013 at a retail price of $399, was estimated by IHS Markit to cost $381 to manufacture. With the $450 unit cost and a similar gross margin, the PlayStation 5’s retail price would have to be at least $470. That would be a hard sell to consumers, considering Sony’s most expensive machine now is the $399.99 PS4 Pro and is often discounted, according to Macquarie Capital analyst Damian Thong.”

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In 2013, the price of the PS4 undercut Microsoft’s Xbox One by $100, and after a slew of mishaps and bad press, the PS4 has by and large been the more popular console of the last 7 years. Furthermore, Sony has typically revealed their hardware in February in new console years past, but have yet to do so so far this year. Insiders have stated Sony is taking their time, and have a close eye on what Microsoft does with the Xbox Series X.

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Neither company seems apt to make the first move, but based on Microsoft’s track record, and their own console reveal as last year’s game awards, E3 2020 is the most likely event for a price announcement. Both companies may end up pricing their respective consoles approximately $500 usd this time around. Unless either decides to undercut their competitor and take a loss to gain consumer mindshare. It wouldn’t be uncharted waters for Sony, as they navigated with the Playstation 3 back in 2006; then selling their console at a loss of nearly $300 per unit. Still, today is a different Sony and a different Microsoft. All that’s left is for one to show their hand.

 

Source: Bloomberg.com

About The Author

Nic S.
Sr. Staff Writer

Nic Stevenson, sometimes called AnthroMetal, is a writer, producer, broadcaster and lover of video games and metal. He's been gaming since he was a wee lad with the Sega Master System way back when and, aside from a 5-year romp through the academic halls of anthropology, followed the gaming industry religiously. He is an avid lover of metal music and sometimes will even play his guitar or sing if necessary. There are no games or genres outside of his purview. Really anything he could play to boost his gamerscore on Xbox Live. You can find him there, usually playing something old because of an ever-increasing backlog, sometimes playing something new when he's able. He has tattoos of BioShock, dead space and borderlands 2 so far, with plans to add as many as he can for those games deemed worthy. He may run out of space. Look, he really really likes video games okay? Okay. Also, he streams sometimes on twitch.