The PS5 may be more expensive than expected – Here’s why
There could be bad news just around the corner for PlayStation fans. Manufacturing issues mean the upcoming PS5 could be more expensive than we first expected.
Component scarcity has reportedly pushed up the price of manufacturing the PS5 to around $450 per console (via Bloomberg).
This is bound to impact on the retail price and could be a result of the on-going coronavirus outbreak. We’ve already seen the disease impact on other related industries, with slowed LCD production expected to push up TV and monitor prices (via PCworld).
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The new console is expected to land in time for Christmas 2020, as is its competitor, the Xbox Series X.
If the reported $450 unit price is indeed true, this would suggest a retail price of around $470. That is, if pricing strategy mirrors that of the PS4. That’s a big price-tag – could it put people off?
The tension at Sony seems to be between selling the machine at a loss, in order to drive sales and popularity, or boosting the price to make money from the console hardware release. Both Sony and Microsoft are remaining cagey on pricing, likely trying to suss out the other’s strategy.
It’s not unheard of to sell consoles at a loss, or at very little profit. It’s been done before and the companies have opportunities to make their profits later, via software releases, games and subscriptions.
The largest issue is seemingly locking down a reliable supply of NAND and DRAM flash memory for the consoles, both are in high demand.
The consensus seems to be that more details on the PS5 will land in April but the console’s manufacturers are basing their pricing decisions, partially, on those of the competition at Microsoft, according to Bloomberg sources.
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