Why PS5's Rumored $500 Price Point Is Completely Reasonable
First up is the PlayStation 4, which cost under $400 to manufacture, which allowed Sony to position the console at $400. This was in 2013 though. In 2020, $400 is roughly $450. Then there's the PS3, the most expensive PlayStation console to date. Back in 2006 it cost $600, which is roughly $770 when considering inflation. Next up is 2000's PS2, which rang in at $300. Interestingly, this translates to essentially the same price of the PS4, $450. Lastly, there's the PS1, which cost the same price as the PS2, but in 1995. Taking into account inflation, the PS1 cost roughly $500 in today's economy.
At first glance, $500 for the PS5 may seem a bit steep, though it's nowhere near as bad as the PS3's launch pricing. However, when you take into account inflation, it's actually pretty reasonably priced. Sure, the PS4 and PS2 are still about $50 cheaper, but it is in line with the PS1 at least.
Of course, there's a chance the PS5 could cost less than $500, but if you read our above linked article, you'll understand why that's unlikely, unless Sony is willing to eat considerable costs up front, which I doubt it will, especially as the current market leader.
That said, $500 is going to be a hard sell for Sony. Not because it's an unfair price point, but because optically half a grand doesn't have that same appeal as $400 or even $450. And with so many people content with their PS4 and PS4 Pros, we could see a slow adoption of the PS5 if it costs $500, which is fine, as long as Microsoft don't come in and undercut them with a price point of less than $500. My general understanding of how much the Xbox Series X costs to manufacture suggests this won't happen though. In fact, I think the Xbox Series X will also cost $500.
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Related Forum: PlayStation Forum
Source: https://comicbook.com/gaming/2020/02/22/ps5-playstation-5-price-cost-500/
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