Sony Confused Set Price for PlayStation 5

PlayStation 5 console

Having been known to release PlayStation (PS) 5 in the “holiday season” 2020, Sony is currently preparing to produce its new console. But at this time, Sony reportedly had difficulty in determining the price of PlayStation (PS) 5. Some components used by PS5 , such as cooling systems, are currently experiencing an increase in prices.

PlayStation 5 console

In addition, the supply of DRAM and NAND flash components is also scarce, due to high demand from a number of mobile manufacturing companies such as Samsung, which is currently producing mobile phones with 5G technology. The scarcity of these components makes the price of both expensive. This forced Sony to jack up the PS5 production price to around $460

This was a difficult decision for Sony given its competition with Microsoft which also launched its new console, the Xbox Series X at the same time. Previously, Sony released the PS4 at a price of US $ 399 with a production price of US $ 381.

By applying the same price difference, it is suspected that the PS5 will slide with a price of 470 US dollars. Damian Thong as Macquarie Capital Analyst said that the price will make consumers think twice before buying PlayStation 5. Whereas at this time PS4 Pro is still considered expensive, and still often gets a discounted price.

“Consumers will compare prices (PS5) with PS4 prices at the time of its launch,” Damian said. Video game companies are known to set thin profit prices, and even lose money when selling their consoles. Usually the new benefits are obtained through game sales and subscription services on the console.

Some Sony believes that the PS5 should be sold at a low price to compete with the Xbox Series X, although it will lose money. On the other hand, Sony also wants to jack up the PS5 selling price to make a profit like the PS4. Responding to this, Kenichiro Yoshida as Sony’s Chief Executive Officer said that he wanted to focus on the number of players, not the number of consoles sold.

“We want to keep the price of console materials under control and focus on the number of units in initial production,” Kenichiro said. Some rumors also say that Sony will launch its latest VR headset after the launch of the PS5.

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