Sony "struggling" to lower $450 PlayStation 5 price, report claims

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

However, according to "people within the PlayStation business unit" a key factor in deciding the PlayStation 5 retail price will be what Microsoft decides to do with the Xbox Series X's pricing.

The PlayStation 5's advanced graphics card and processors also allow the device to support 8K graphics, in addition to 3D audio according to prior reports.

"We must keep PlayStation 5's bill of materials under our control and we need to make the correct number of units in the initial production", Sony's Chief Financial Officer Hiroki Totoki said at an earnings briefing earlier this month.

The PS4, released in 2013 at a retail price of US$399, was estimated by IHS Markit to cost US$381 to manufacture.

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".

But if Sony is indeed struggling to source cheaper components, this may narrow the company's options on how flexible it can be. The more powerful hardware also requires a more elaborate (and expensive) cooling system than past Sony consoles. Gamers will be happy to hear Sony opted for a cooling solution ensuring better heat dissipation, but in so doing, the cost rose to a few dollars per console.

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Sony has also said that the ongoing coronavirus outbreak has had no impact on PS5 production, unlike the Animal Crossing Nintendo Switch. What's more, no one else saw the same thing despite the Sony PlayStation Japan website presumably pulling in a fair amount of traffic at any one moment. Sega was first to release a CD addon for the Mega Drive / Genesis console in 1991, and Nintendo had to ask Sony (one of the original creators of the CD format) to help with the development of a CD-based addon for the SNES console.

If Sony were to make a profit on each console sold, the cost of the PS5 would be enormous - $699 in Australian terms, or even higher factoring in expenses from shipping and distribution.

Microsoft is widely expected to hold that information back until the E3 gaming expo in Los Angeles in June.

That may put Sony at a disadvantage when the PS5 launches.

The survey is only available until 4th March 2020 (T&Cs apply*, United Kingdom and USA readers only), so don't wait too long to take part.

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