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September 23, 2020
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Report: Sony facing PS5 pricing quandary as manufacturing cost rises

Report: Sony facing PS5 pricing quandary as manufacturing cost rises

February 14, 2020 | By Chris Kerr

The manufacturing cost of Sony's next-gen PlayStation 5 has risen to around $450 per unit due to a parts shortage.

That's according to a report from Bloomberg, which suggests Sony is specifically struggling to secure a reliable supply of DRAM and NAND flash memory, which are also being chased by smartphone manufacturers like Samsung.

It's a situation that might cause a pricing headache for Sony, potentially resulting in the company selling the PlayStation 5 for around $470, assuming the console has a similar gross margin to the PS4. 

Such a lofty figure could cause sticker shock when you consider the flagship PlayStation 4 Pro currently retails for $399, possibly turning some consumers away from the console -- especially if Microsoft settles on a more competitive price point for the upcoming Xbox Series X

Of course, Sony could always choose to sell the system at a loss, which wouldn't be unheard of when it comes to console hardware.

Ultimately, those insiders who spoke to Bloomberg said Sony bosses are currently urging patience when it comes to pricing, and are keen to see how Microsoft sets out its stall with the Xbox Series X before committing to a number. So, while these latest reports are interesting, its worth taking them with a pinch of salt.

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