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The production cost of PlayStation 5 would be $ 450 according to Bloomberg

The Boss April 27, 2020 No Comments


Sony Interactive Entertainment is fully immersed to decide the price of Playstation 5 once it reaches the market, a figure that will be conditioned by the cost of manufacturing the console, which according to Bloomberg would be $ 450. The culprit for this high value would be the current shortage of components.

According to the consultancy IHS MarkitThe cost of producing PlayStation 4 in 2013 was $ 381, and the console hit stores for $ 399. At a unit price of $ 450 and a similar gross margin, the PlayStation 5 retail price should be around $ 470. It's no wonder that at the start of a generation manufacturers are selling their console at a loss, but Sony designed the PlayStation 4 to be profitable from day one.

The Japanese company you are having trouble finding a reliable source to supply you with DRAM and NAND flash memory, both highly demanded in the mobile phone market, which makes it difficult to buy since there is a high demand for production.

Another important detail according to the same sources of Bloomberg, is that Sony has spent more budget than usual on the cooling system to guarantee that its components do not overheat and cause some type of problem such as excessive noise.

Many are the voices in the company that defend that PS5 should be sold at a loss if it were necessary to match the price of Xbox Series X.

Kenichiro Yoshida, Sony's chief executive, commented a few days ago that the business should be valued for the number of active users and not for the consoles sold. However, there are also those who prefer that the hardware leave money in cash from the first day.

Hiroki Totoki, CFO of Sony, indicated to the group of investors last January their concern to manage to produce a number as close as possible to the necessary components, thus balancing the costs so as not to unbalance the possible profit margin.

Internally Sony cannot wait any longer to communicate to its chief financial officer the retail price of PS5Because you need to make numbers and make a decision that can condition success in the new generation. One of the factors to decide the final price of PlayStation 5, will be know the price at which Microsoft will launch the Xbox Series X, something that is expected to know during the next E3 2020.



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