Sony struggling to set PS5 price after scarce components push cost to $450 – reportby Sherif Saed
Sony is reportedly struggling to keep the cost of PS5 down.
According to a Bloomberg report, some of the technical components that make up the PlayStation 5 are facing shortages, causing the cost of individual units to rise.
Sony, which Bloomberg says usually finalises the unit’s price in February, is finding it especially hard to secure NAND flash memory and DRAM components. Sony’s decision to include an NVME SSD in every PS5 has forced it to compete with smartphone manufacturers, most of which also rely on the same memory type to build their products.
Bloomberg reports that as more of them start ordering NAND for the next generation of smartphones, due for release later this year, the supply is going to get even more constrained, driving prices up. Another component pushing the price of PS5 ever so slightly is cooling, which the report says cost Sony “a few dollars” per unit as a result of the power chips inside the console – as opposed to its typical sub-dollar cost.
Mass production typically starts in the spring, but given the current state of affairs, Sony is taking a “wait and see” approach. Some within the company do not want to take a loss on every unit, while others see it as a necessary hit in order to keep the final price down. For reference, Sony reportedly made just $19 of profit on every PS4 unit at the launch price of $400.
The platform holder has also yet to decide on the number of units to be manufactured before the end of the year. A decision that, once again, is typically made around this time of year.
Finally, sources inside Sony told Bloomberg that the price of Microsoft’s Xbox Series X will be “a key factor” in Sony’s ultimate decision of pricing the PS5. Indeed, company CFO alluded to this in the most recent earnings call.
For more on what we know so far of the PS5’s specs, confirmed games, release target and more, head through the link. We also have a similar page for the Xbox Series X.