PlayStation 5 Production Cost Increases Due To Expensive Parts?

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The PlayStation 5 production cost apparently just went up for Sony Interactive Entertainment. According to internal sources from Bloomberg, the cost of producing one PS5 unit has risen to 450$.

The production cost is certainly going to make the PlayStation 5 pricing decision, very hard for Sony. As we know that the PlayStation 5 price is still not decided yet. It looks like production cost is one of the bigger reasons due to which Sony has not been able to determine the PlayStation 5 price. Of course, waiting for Microsoft to announce the Xbox Series X price also seems logical.

Sony seems to be taking a wait-and-see approach with the PlayStation 5. Usually, the company announces its console price in February and mass production of that console begins in spring. The retail price of the PlayStation 4 was $399 and its cost of manufacture was $381. If we go by this standard then the PlayStation 5 price should be around $470.

Spending $470 dollars on a console just seems excessive even for this day and age. The most expensive console from Sony at the moment is the PS4 Pro which costs $399. That is a $70 dollar difference at the minimum. Making a generational leap in the console department has never had this much of a discrepancy in cost.

Right now Sony’s biggest concern is supplying NAND flash memory and DRAM, reliably. The demand has increased due to the launch of a next generation of smartphones. It should be pointed out that consoles are usually sold at a loss in the beginning by video game companies. They get their profits from online subscription services. Maintaining a high number of active users is the top priority upon release.

Looks like Sony is in a rough spot right now. Revenue from game software and online services should provide a cushion for the company if things go side-ways. The launch event for the PlayStation 5 is rumored to take place in March. If that turns out to be the case, we could very well have the price point for PlayStation 5.

Posted: Feb 18, 2020 9:19 am
Related Forum: PlayStation Forum

Source: https://segmentnext.com/2020/02/14/playstation-5-production-cost/

Comments

ScxttPosted: Tue. Feb 18, 2020

TimeSplitters
OGTrey079
TimeSplitters It looks as of Xbox will win this generation due to better performance for price. Looking forward to more games and smooth gaming.

Performance won't be much if the content isn't there. Both of them will do good enough performance wise.
Do you even keep up?
Obviously Microsoft is due to perform even with games. Exclusive release every 3-4 months takes years of preplanning. Sony will be sitting out on "power" and no, Playstation will not be "close" to the next xbox... not with those outdated parts and scams.
Sony rely on Microsoft now, and they've made that quite clear with Xcloud, as well as "waiting on Microsoft to put a lower price tag" which is a dumb scam that'll play themselves a crash in the market, copying Xbox controllers and trends. Get real.
I play on PC too lol
You sound like a Sony Fanboy btw.

'You sound like a Sony Fanboy btw'
Hasn't mentioned anything about Sony lol, if anything you sound like an Xbox fanboy hahaha

OGTrey079Posted: Tue. Feb 18, 2020

TimeSplitters
OGTrey079
TimeSplitters It looks as of Xbox will win this generation due to better performance for price. Looking forward to more games and smooth gaming.

Performance won't be much if the content isn't there. Both of them will do good enough performance wise.
Do you even keep up?
Obviously Microsoft is due to perform even with games. Exclusive release every 3-4 months takes years of preplanning. Sony will be sitting out on "power" and no, Playstation will not be "close" to the next xbox... not with those outdated parts and scams.
Sony rely on Microsoft now, and they've made that quite clear with Xcloud, as well as "waiting on Microsoft to put a lower price tag" which is a dumb scam that'll play themselves a crash in the market, copying Xbox controllers and trends. Get real.
I play on PC too lol
You sound like a Sony Fanboy btw.

I don't own a PS4 I have an Xbox one x but Only play sp games time to time. Main console if I do play one is a switch. I been building computers since 2011 so no I don't favor any console. 3-4 months sound cool and all but they don't even have a list of what it will be. Quantity over quality can be bad if they pump out some bullshit chump games.

TimeSplittersPosted: Tue. Feb 18, 2020

OGTrey079
TimeSplitters It looks as of Xbox will win this generation due to better performance for price. Looking forward to more games and smooth gaming.

Performance won't be much if the content isn't there. Both of them will do good enough performance wise.

Do you even keep up?
Obviously Microsoft is due to perform even with games. Exclusive release every 3-4 months takes years of preplanning. Sony will be sitting out on "power" and no, Playstation will not be "close" to the next xbox... not with those outdated parts and scams.
Sony rely on Microsoft now, and they've made that quite clear with Xcloud, as well as "waiting on Microsoft to put a lower price tag" which is a dumb scam that'll play themselves a crash in the market, copying Xbox controllers and trends. Get real.
I play on PC too lol
You sound like a Sony Fanboy btw.

OGTrey079Posted: Tue. Feb 18, 2020

TimeSplitters It looks as of Xbox will win this generation due to better performance for price. Looking forward to more games and smooth gaming.

Performance won't be much if the content isn't there. Both of them will do good enough performance wise.

TimeSplittersPosted: Tue. Feb 18, 2020

It looks as of Xbox will win this generation due to better performance for price. Looking forward to more games and smooth gaming.