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Sony Reportedly Battling to Keep PlayStation 5 Price Down

In the News

Sony is struggling to land on a price for its upcoming PlayStation 5 console, according to a new report by Bloomberg, with component shortages potentially pushing the MSRP beyond that of the PS4. The bill of materials is said to be at around $450 right now, compared to IHS Markit’s estimate of $381 for the PS4, which sold for $399 upon its release in 2013.

1 month ago
What do you think of this?
BonzoBanana1 month ago

I never believe these manufacturing estimates they seem often to be based on retail prices or close to it. Bicycles often have a factory door price of about 1/4 of the retail price in the UK but some people seem to think its 70% of retail price or close to it. However there are many huge upfront costs like the R&D of developing the PS5. However its clear the corona virus is creating supply issues and causing delays which may have a knock on effect at the end of the year. Much of the same technology is in the new Xbox so that I'm sure will face similar issues. Gaming consoles while selling in their millions per year are actually less significant than phones which often use many similar support chips, memory etc and often sell for higher prices with a better margin and greater numbers so both Sony and Microsoft will not be the chip makers best customer for such chips. The main chips made by AMD though are certainly a big revenue stream for AMD.

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