Sony "struggles" to lower the price of $ 450 from PlayStation 5, according to a report • newsdio

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Due to the high manufacturing costs.

High prices for PlayStation 5 parts have raised Sony's manufacturing costs for the console, according to a new Bloomberg report.

Each PS5 will cost around $ 450 (345), Bloomberg sources said, which will affect the price at which it is then sold to consumers.

Sony declined to comment on the Bloomberg article.

The costs of DRAM and NAND flash memory are apparently the culprits, as these components are also in great demand from smartphone manufacturers. Sony is also paying an "unusually expensive" amount per unit for the PS5's cooling system to ensure that the machines do not suffer from overheating.

At launch, it was believed that the manufacturing cost of PlayStation 4 was around $ 381. It was initially sold at $ 399.

But it's hard to extrapolate a lot for PS5. The consoles are sold regularly with little benefit, and sometimes with a small loss. Where PlayStation 5 lands depends more on how ruthless Sony wants to be to fight its rivals.

At that point, Bloomberg sources said Sony was taking a "wait and see approach," something the company said publicly last week.

(embed) https://www.youtube.com/watch?v=0PqMj6aSYH0 (/ embed)

During his most recent call to investors, Sony executive Hiroki Totok admitted that the company was not ready to publicly discuss the price of PlayStation 5, and hinted that he would wait for Microsoft to blink first and name its cost for Xbox Series X .

"Because we are competing in this space, it is very difficult to discuss something about the price at this time," said Totok. "Depending on the price level, we may have to determine the promotion we are going to implement and the costs we are willing to pay. Therefore, it is a matter of balance."

But if Sony is struggling to get cheaper components, this can reduce the company's options on how flexible it can be.



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