"Death Stranding" will be playable on the PS5 due to backwards compatibility.Kojima Productions

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


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.