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Bloomberg: PS5 manufacturing costs pushed to $450 per unit, Sony facing pricing difficulty due to competition and scarce parts

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Mista

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Scarce components have increased manufacturing costs for PlayStation 5 to around $450 per unit, according to a Bloomberg report citing “people with knowledge of the matter.”

Whereas Sony Interactive Entertainment typically finalizes a console’s price in February of the release year, followed by mass production in the spring, Bloomberg reports the company is taking a wait-and-see approach with PlayStation 5.

PlayStation 4, which was released in November 2013 for $399, is estimated to have cost $381 to manufacture. If PlayStation 5 has a similar gross margin, its retail price would have to be at least $470.

According to Bloomberg, Sony Interactive Entertainment’s biggest struggle is securing a reliable supply of DRAM and NAND flash memory, as both are high in demand.

Some Sony Interactive Entertainment staff think the new console should be sold at a loss if necessary to match the price of Microsoft’s Xbox Series X, as the platform would profit from game software and online service sales, while others would prefer the hardware make a profit from the get-go, says the report.

While most of PlayStation 5’s components are reportedly locked down, including the “unusually expensive” cooling system to “make sure heat dissipation from the powerful chips housed inside the console isn’t an issue,” Bloomberg cites “several people with knowledge of the matter” who said that some previously planned features for a new mirror-less camera have been cancelled due to the constrained DRAM supply.

The coronavirus outbreak has reportedly had no impact so far on preparation for PlayStation 5 production, Sony Interactive Entertainment has apparently yet to decide how many units it will make in the first year.

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.

The outlet also reports that many of the games launched for PlayStation 5 will also be available to play on PlayStation 4.

There is reportedly pressure from Sony Corporation CFO Hiroki Totoki to provide more transparency and information in the lead-up to PlayStation 5’s launch this holiday season, which has led to some internal distress. Totoki said that Sony’s plan to provide guidance on the gaming business outlook for the new fiscal year is no different from the recent past, meaning said guidance can be expected at the end of April.

Outside of PlayStation 5, Bloomberg reports that Sony Interactive Entertainment also plans to release a new version of PlayStation VR sometime after PlayStation 5 goes on sale.

Gematsu
 

GymWolf

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Am i the only one sad that the price is 450 only because of problems?

So without problems the price will be 400....

So we can basically forget a 500-600 dollars beast machine from sony...

Fuck why is microsoft the one with the esclusives on pc...their console is shaping far better than ps5 but i don:t need an xbox to play microsoft exclusives games...
 
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SleepDoctor

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Sell at a loss, money will be made right back since production eventually gets cheaper. And like the article said, they still make money off plus and software.
 
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Mista

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This is a duplicate thread. Please continue here

 

SuperLupeRap

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Okay so looks like Sony is going for a modestly powerful but cheap machine whereas MS is going for a beast but more expensive. I'm fine with both companies having different strategies.
 

TwiztidElf

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So just sell it at US$499. No biggie in 2020. Most peoples phones cost more than that.
At least it's not US$599 in 2006.
 
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JAMMA

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Am i the only one sad that the price is 450 only because of problems?

So without problems the price will be 400....

So we can basically forget a 500-600 dollars beast machine from sony...

Fuck why is microsoft the one with the esclusives on pc...their console is shaping far better than ps5 but i don:t need an xbox to play microsoft exclusives games...
The insanely vast majority of games are 3rd party. It’s more of an annoyance to buy the underpowered Sony consoles just for a tiny handful
of exclusives. Sony is moving towards PC too, so the future is up in the air regarding that aspect as well.

I’m going to by the most powerful console with the best versions of games on physical media. IDC if it’s Sony or MS, my dollar will go towards the most power machine.

Gamepass and digital means nothing to me personally. Since I’m not the target audience, Microsoft will need the best console hardware to keep me on board.
 
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GymWolf

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The insanely vast majority of games are 3rd party. It’s more of an annoyance to buy the underpowered Sony consoles just for a tiny handful
of exclusives. Sony is moving towards PC too, so the future is up in the air regarding that aspect as well.

I’m going to by the most powerful console with the best versions of games on physical media. IDC if it’s Sony or MS, my dollar will go towards the most power machine.
Unfortunately (or not) i'm mostly a pc gamer so i have zero interest in buying an xbox console, and if sony doesn't release their game on pc on day one i'm not the type of guy that can wait 6 month to years to play horizon 2 or gow 2 etc.

Sony needs to fucking clarify what are their intentions for their exclusives games on pc...
 
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Elektro Demon

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Unfortunately (or not) i'm mostly a pc gamer so i have zero interest in buying an xbox console, and if sony doesn't release their game on pcat day one i'm not the type of guy that can wait 6 month to years to play horizon 2 or gow 2 etc.
Sony needs to fucking clarify what are their intentions for their exclusives games on pc...
This. I wanna know.
 
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Unfortunately (or not) i'm mostly a pc gamer so i have zero interest in buying an xbox console, and if sony doesn't release their game on pc on day one i'm not the type of guy that can wait 6 month to years to play horizon 2 or gow 2 etc.

Sony needs to fucking clarify what are their intentions for their exclusives games on pc...

there will be ZERO games like that at launch... 2022 at the earlierst. no reason to get a ps5 at launch.
 

GymWolf

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there will be ZERO games like that at launch... 2022 at the earlierst. no reason to get a ps5 at launch.
Not gonna buy at launch if there is not good game ready.
But gamestops usually supervalue your old console for a new one so i need to check what special value can i have with my pro.
 

INCUBASE

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Don't they always make at a lose anyway?

If it's got decent hardware, people will pay £450-500

It's always been this way no?
 
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