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Sony Struggling To Keep PlayStation 5 Costs Down

Sony is having a hard time reining in production costs of the PlayStation 5, according to a recent report. 

Currently, the manufacturing cost per unit of the upcoming video games console is sitting at around US$450, according to a Bloomberg report. Difficulties in the supply of DRAM and NAND flash memory, due in part to competition from smartphone manufacturers, is cited as the largest obstacle Sony is facing in keeping the costs down. 

Bloomberg speculates that Sony would find it hard to sell the PS5, which is expected to launch in late 2020, for less than US$470. Indeed, a launch price point of US$499 seems plausible unless Sony can solve its cost issues over the next few months before production commences. 

The PlayStation 4 launched at US$399 in 2013. Microsoft’s competitor, the Xbox One, launched at the same time but at a higher price point. Subsequent sales over the console generation have strongly favoured the PS4. 

In the prior console generation, Sony’s more expensive PS3 struggled against the cheaper Xbox 360.  

Microsoft is expected to announce more details, including pricing, of its new Xbox Series X at the annual E3 Expo in June. The Xbox Series X is also expected to launch in late 2020. 

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