Rumour: PS5's Price Could Be High After Sony Struggles with Expensive Components

PS5 costly parts reportedly increasing production cost to $450 launch exclusives running on PS4

If PlayStation 5 has a similar gross margin, its retail price would have to be at least $470. The Xbox Series X price tag might be unveiled in June at E3, an event that Sony is snubbing for the second consecutive year.

"Consumers will benchmark their expectations based on the PS4 Pro and PS4", Thong said.

According to Bloomberg, Sony Interactive Entertainment's biggest struggle is securing a reliable supply of DRAM and NAND flash memory, as both are high in demand.

When it comes to hardware, companies don't often sell at much profit and sometimes at a loss but make up for it with software and subscription services.

The estimated manufacturing cost of one PS5 is around $450 when taking these components into account.

Some Sony games staff think it should sell the new console at a loss if necessary to match Microsoft's price, while other Sony executives would prefer to make money as the company did with the PS4. They will be used for the RAM of the console and its SSD storage. Sony is also paying an "unusually expensive" amount per unit for the PS5's cooling system to ensure machines do not suffer from overheating. It's worth noting that the ongoing Coronavirus outbreak has had no impact on PlayStation 5's production preparations.

According to Bloomberg, Sony is planning a new bit of VR kit, with a release date set just after the PS5 launches.

Bloomberg cites "people within the PlayStation business" who said a key factor in determining the price point of PlayStation 5 will be how Microsoft prices Xbox Series X.

Sony also believes that this console transition will be a more gradual one than previous generations.

The Nintendo PlayStation features a slot for Super Famicom and Super Nintendo games, and also a CD-ROM drive meant to play disc-based media and games.

There is reportedly pressure from Sony Corporation CFO Hiroki Totoki to provide more transparency and information in the lead-up to PlayStation 5's launch this holiday season, which has led to some internal distress.

Asked about when he expects Sony to provide guidance on the gaming business outlook for the new fiscal year, Totoki said the plan is no different from the recent past, meaning the guidance can be expected around the end of April. For instance, a boxed copy of the original Mega Man went for $75,000 last year, and a couple of years ago a copy of Super Mario Bros was sold for $100,000.

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