Rumour: PS5's Price Could Be High After Sony Struggles with Expensive Components

Oculus Rift

Oculus Rift

That makes it highly likely the RRP will start above that, not lower than £470, and probably closer to the $499 price tag that the Xbox One (and Xbox One X) first launched with.

DRAM and NAND flash memory costs are apparently to blame - as these components are also in high demand from smartphone manufacturers. However, according to people with knowledge of the matter, Sony is "taking a wait-and-see approach" with the PlayStation 5. 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.

When it comes to hardware, companies don't often sell at much profit and sometimes at a loss but make up for it with software and subscription services.

At one time, this particular unit was owned by the founder, first president, and first chief executive officer of Sony Computer Entertainment, Inc.

While the price may not be set, most of the PS5's components have been locked down, including the cooling system which is "unusually expensive at a few dollars per unit".

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. Such a device is the Galaxy S20, which ships with at least 12GB of RAM and 128GB of storage. It's worth noting that the ongoing Coronavirus outbreak has had no impact on PlayStation 5's production preparations.

Separately, Sony plans to release a new version of the PlayStation VR virtual-reality headset, tentatively scheduled after the PlayStation 5 goes on sale, the people said.

The outlet also reports that numerous games launched for PlayStation 5 will also be available to play on PlayStation 4. However, according to "people within the PlayStation business unit" a key factor in deciding the PlayStation 5 retail price will be what Microsoft decides to do with the Xbox Series X's pricing.

There is reportedly pressure from Sony Corporation CFO Hiroki Totoki to provide more transparency and information in the lead-up to PlayStation 5's launch this holiday season, which has led to some internal distress.

However, Sony won't be looking to profit on console sales alone. For instance, a boxed copy of the original Mega Man went for $75,000 last year, and a couple of years ago a copy of Super Mario Bros was sold for $100,000.

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