The PlayStation 5 could cost as much as $470 as Sony reportedly struggles to keep the cost of parts down

• 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 $US450 per unit – which would mean a minimum retail price of $US470 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 $US399.

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.