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Sony's Playstation 5 composed of expensive parts

Sony has trouble managing the cost of manufacturing the PlayStation 5. The cost is currently $ 450 USD. Fixing a competitive price for the new console can be difficult for the company.

Video game consoles are often sold for little or no profit because businesses expect to make money through video game sales. The PS4 sold $ 399 during its launch in 2013. The PS4 Pro was launched at the same price in 2016. The PS4 was estimated at US $ 381 to manufacture according to IHS Markit. If Sony wanted to maintain the same profit margin with PlayStation 5, the PS5 is expected to sell 470 USD.

Bloomberg has made contact with Sony employees and executives who are divided on price issue. Some believe it would be better to match Mircrosoft's X series prices while others would prefer to take advantage of system sales.

The cost of some parts increases the overall cost. The cooling system is exceptionally expensive for the PS5 as it costs a few dollars per unit. Sony has chosen more expensive devices to minimize the risk of overheating problems. The cost of materials and the number of units in the initial product series both play a role in pricing.

We must keep the nomenclature of the PlayStation 5 under our control and we must manufacture the correct number of units in initial production, said Hiroki Totoki, Sony's financial director at a briefing on the results earlier this month -this.

The announcement of the price of the Xbox Series X should be the key factor in determining how much will cost the PS5. Microsoft should not unveil its price before the E3 2020 will take place in June.

Astellia Online: 20 Tips and Tricks for New Players! The PS5 should be launched in time for the 2020 holiday season.

Source: Bloomberg

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