PlayStation 5 Manufacturing Costs Reportedly at 'Around $450 Per Unit'

Joanna Estrada
February 14, 2020

For the moment Sony does not announce anything concerning its next-gen console, and according to Bloomberg, it is also because the firm would be in difficulty concerning the manufacturing price of the PlayStation 5.

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

It's not unusual for consoles to be sold at or near a loss, as the games themselves and subscription services more than make up for it.

The biggest problem Sony is facing in regards to the PlayStation 5 is a "reliable supply of DRAM and NAND flash memory".

That would be a hard sell to consumers, considering Sony's most expensive machine now is the US$399.99 PS4 Pro and is often discounted, according to Macquarie Capital analyst Damian Thong.

On that point, Bloomberg sources said Sony was now taking a "wait-and-see approach" - something the company publicly said as much last week. The site indicates that the manufacturing costs of the new PlayStation are now around 450 dollars per unit, which puts the Japanese giant in difficulty, which has yet to announce the price of its new console.

Some Sony games staff shared their opinion that the company should sell the PlayStation 5 at a loss if necessary to match the new Xbox.

Typically, companies would spend less than a dollar, but Sony opted to lavish more on making sure heat dissipation from the powerful chips housed inside the console isn't an issue.

Sony has also said that the ongoing coronavirus outbreak has had no impact on PS5 production, unlike the Animal Crossing Nintendo Switch. Such a device is the Galaxy S20, which ships with at least 12GB of RAM and 128GB of storage. This includes the cooling system, which usually doesn't cost much but Sony made a decision to spend more in order to make sure that heat dissipation won't be an issue for the new console.

While the company has yet to decide how many PlayStation 5 units they'll produce in the first year, the source added that we can expect to see the release of a new PlayStation VR headset sometime after the PlayStation 5 launch. The PS4 benefited from a lower cost than the Xbox One, and Sony likely won't be keen to reverse that for this generation.

Bloomberg reports new information on the PlayStation 5.

However, Sony won't be looking to profit on console sales alone. The company held that meeting in late May previous year.

Other reports by Click Lancashire

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