- Sony is struggling to keep the cost of manufacturing for its upcoming PlayStation 5 down, sources within the company told Bloomberg.
- Specifically PlayStation is contending with a scarcity for parts also in demand from the smartphone industry.
- PlayStation insiders said exactly where the company prices the PS5 will depend on where rival Microsoft prices its next-generation Xbox, the Xbox Series X.
- Some PlayStation staff are recommending the company sell the console at a loss if necessary and rely on subscription services to bring in extra revenue.
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Sony is struggling with growing manufacturing costs driving up the cost of its next-generation console the PlayStation 5, Bloomberg reports.
The PS5 is due to come out in the holiday season of next year, marking the next generation of console gaming alongside Microsoft’s next-gen console the Xbox Series X.
Sources with knowledge of the matter told Bloomberg the PS5 currently costs $450 per unit – which would mean a minimum retail price of $470 to ensure a profit similar to that of PlayStation’s current consoles. This would represent a significant jump in price for consumers. PlayStation’s most expensive current console, the PlayStation Pro, has a retail price of $399.
Bloomberg’s sources said the main problem is a scarcity of components for DRAM and NAND flash memory, as competition for supply from smartphone makers has risen as the phone industry gears up for its own next-generation devices. They added that Sony has opted for an unusually expensive cooling system to make sure the console’s more powerful chips don’t overheat.
A big factor in exactly where Sony puts its price-point for the PS5 will be how much Microsoft decides to sell its Xbox Series X for, sources inside PlayStation’s business unit said. Bloomberg reports that some PlayStation staff think the company should sell the PS5 at a loss if necessary to compete with Microsoft, relying on subscription services like PlayStation Now for extra revenue, while others are arguing the machines themselves will have to sell at a profit.
Sony declined to comment when contacted by Bloomberg, and was not immediately available for comment when contacted by Business Insider.