wraggster
February 17th, 2020, 18:41
The PlayStation 5 will cost around $450 per unit to manufacture, according to inside sources.
Speaking with Bloomberg (https://www.bloomberg.com/news/articles/2020-02-14/sony-is-struggling-with-playstation-5-price-due-to-costly-parts), people at Sony with knowledge of the matter said the cost of high-end components -- especially around heat dissipation -- had driven up production costs.
Console manufacturing is typically a narrow margin or loss-leading endeavour; the PS4 launched with a price point of $399 in 2013, and market intelligence firm IHS Markit (https://technology.ihs.com/467046/sony-nears-breakeven-point-on-playstation-4-hardware-costs) estimates manufacturing costs were around $381 per unit.
Historically, console launch price has proven a delicate topic, as evidenced by the PS3 introductory price of $599, which Sony exec Shawn Layden later described as a "stark moment of hubris" (https://www.gamesindustry.biz/articles/2019-02-12-ps3-was-a-stark-moment-of-hubris-layden) after the record-breaking success of the PS2.
Microsoft made a similar misstep with the Xbox One, launching the console at $499 in 2013.
As Sony one again enters a new generation after having dominated the previous one, the platform holder finds itself in a delicate position when it comes to pricing -- one source said the Xbox retail price will be a deciding factor.
https://www.gamesindustry.biz/articles/2020-02-14-expensive-components-drive-ps5-production-costs-to-usd450-each
Speaking with Bloomberg (https://www.bloomberg.com/news/articles/2020-02-14/sony-is-struggling-with-playstation-5-price-due-to-costly-parts), people at Sony with knowledge of the matter said the cost of high-end components -- especially around heat dissipation -- had driven up production costs.
Console manufacturing is typically a narrow margin or loss-leading endeavour; the PS4 launched with a price point of $399 in 2013, and market intelligence firm IHS Markit (https://technology.ihs.com/467046/sony-nears-breakeven-point-on-playstation-4-hardware-costs) estimates manufacturing costs were around $381 per unit.
Historically, console launch price has proven a delicate topic, as evidenced by the PS3 introductory price of $599, which Sony exec Shawn Layden later described as a "stark moment of hubris" (https://www.gamesindustry.biz/articles/2019-02-12-ps3-was-a-stark-moment-of-hubris-layden) after the record-breaking success of the PS2.
Microsoft made a similar misstep with the Xbox One, launching the console at $499 in 2013.
As Sony one again enters a new generation after having dominated the previous one, the platform holder finds itself in a delicate position when it comes to pricing -- one source said the Xbox retail price will be a deciding factor.
https://www.gamesindustry.biz/articles/2020-02-14-expensive-components-drive-ps5-production-costs-to-usd450-each