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$450 PS5 is Making Sony Nervous – and It’s a Pricing Disaster for Fans

Last Updated September 23, 2020 1:34 PM
Thomas Bardwell
Last Updated September 23, 2020 1:34 PM
  • A new report suggests Sony is struggling to keep the manufacturing cost of the PS5 under $450.
  • Sourcing DRAM and NAND flash memory are proving problematic due to competing demand from the mobile-phone industry.
  • Consumers could bear the brunt of this part scarcity if Sony opts to bump up the retail price of the PS5.

Sony is having trouble keeping the manufacturing costs of the PlayStation 5 under $450 per unit, according to a new report from Bloomberg .

Part Scarcity Bumps PlayStation 5 Production Costs to $450 Per Unit

Citing ‘people with knowledge of the matter,’ Bloomberg says a scarcity of components is pushing up the price. DRAM and NAND flash memory are specifically problematic.

High demand for these parts from smartphone manufacturers prepping for the proliferation of 5G makes finding a reliable supply challenging.

Even Sony Is Sweating Over a $450 PS5, a Pricing Disaster for Fans
Sony’s PlayStation 5 logo is official but details are far and few in-between. | Source: Sony Interactive Entertainment

As recently as last month, Sony said the final retail cost of the Xbox Series X would dictate the price of the PlayStation 5 . While Sony and competitor Microsoft remain guarded over the expected pricing of their respective next-generation consoles, the consensus is that pricing above $399 would hamper sales.

Pricing Disaster

Selling consoles as at a loss at the beginning of a generational life-cycle is a relatively common practice. Manufacturers then recuperate losses through game sales. But, this price surge would see Sony take a substantially larger hit to keep the cost down for consumers.

Sony may also opt to take a different approach and price to PlayStation 5 higher to compensate for the increased manufacturing costs. Sony would look to make a profit, albeit a marginal one. In this case, fans would bear the brunt of the cost.

These two stances have caused divisions internally.

Even Sony Is Sweating Over a $450 PS5, a Pricing Disaster for Fans
We already know what the Xbox ‘Series X’ looks like. | Source: Microsoft

It’s reasonable to assume that Microsoft may be experiencing similar sourcing issues. With both intending to align their prices with one another to a certain extent, the two may raise these in unison. The next-generation consoles may be more expensive than anticipated – a pricing disaster for consumers.

The report also reveals that Sony is investing in a more robust cooling solution for the PS5. This should please anyone who’s witnessed the cacophony caused by a PlayStation 4’s fans running full blast.

Equally interesting, Bloomberg reports that Sony is planning cross-generational releases for many PlayStation 5 titles.