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Sony Is Struggling With PlayStation 5 Price Due To Costly Parts - price could be north of $470

Posted by decline (aka Decline) Feb 14 '20, 07:31

The Japanese conglomerate is preparing to gradually replace the six-year-old PS4 console, releasing its PlayStation 5 the same holiday season its archrival debuts the upcoming Xbox Series X. Sony typically finalizes a console's price in February of the release year, followed by mass production in the spring. With the PS5, the company is taking a wait-and-see approach, said the people, asking not to be named because the details are private. The PS4, released in 2013 at a retail price of $399, was estimated by IHS Markit to cost $381 to manufacture. With the $450 unit cost and a similar gross margin, the PlayStation 5's retail price would have to be at least $470. That would be a hard sell to consumers, considering Sony's most expensive machine now is the $399.99 PS4 Pro and is often discounted, according to Macquarie Capital analyst Damian Thong.

Responses:

We don’t have to do next gen this year if it helps. We’ve certainly had longer gen-cycles than the one we’re currently on. -- nm - Qale Feb 14, 07:56
I wonder if the China supply chain will be an impact. -- nm - Mop Feb 14, 07:54
Plus it takes at least a year for games to adapt -- nm - budice Feb 14, 07:46 1
- Thankfully, they both have BC for current gen (at least), which is pretty huge. -- nm - Shaun Feb 14, 07:48
Almost everyone already expects it to be priced at $500USD. Clearly, I hope it's less, but that's what I'm preparing for. -- nm* - Shaun Feb 14, 07:32 1
- Microsoft should apply the mobile model to the Xbox. Free with 2 year Xbox Live subscription. -- nm - Mop Feb 14, 07:55

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Sony Is Struggling With PlayStation 5 Price Due To Costly Parts - price could be north of $470

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