Expensive components drive PS5 production costs to $450 per unit

first_img 0Sign inorRegisterto rate and replySign in to contributeEmail addressPasswordSign in Need an account? Register now. Expensive components drive PS5 production costs to $450 per unitRetail price of Xbox Series X will be deciding factor in PlayStation 5 price tag Haydn TaylorSenior Staff WriterFriday 14th February 2020Share this article Recommend Tweet ShareCompanies in this articleSonyThe PlayStation 5 will cost around $450 per unit to manufacture, according to inside sources. Speaking with Bloomberg, people at Sony with knowledge of the matter said the cost of high-end components — especially around heat dissipation — had driven up production costs. Console manufacturing is typically a narrow margin or loss-leading endeavour; the PS4 launched with a price point of $399 in 2013, and market intelligence firm IHS Markit estimates manufacturing costs were around $381 per unit. Historically, console launch price has proven a delicate topic, as evidenced by the PS3 introductory price of $599, which Sony exec Shawn Layden later described as a “stark moment of hubris” after the record-breaking success of the PS2. Microsoft made a similar misstep with the Xbox One, launching the console at $499 in 2013. As Sony one again enters a new generation after having dominated the previous one, the platform holder finds itself in a delicate position when it comes to pricing — one source said the Xbox retail price will be a deciding factor. Related JobsSenior Game Designer – UE4 – AAA United Kingdom Amiqus GamesProgrammer – REMOTE – work with industry veterans! North West Amiqus GamesJunior Video Editor – GLOBAL publisher United Kingdom Amiqus GamesDiscover more jobs in games According to Bloomberg, however, Sony executives expect a longer transition into next gen; with over 100 million PS4 units sold, Sony will also be launching many new titles across both the old and new platforms. This slow transition is complemented by an industry-wide change in attitudes away from a laser focus on unit sales, with platform holders leveraging online services to maintain revenue as seen in both Sony and Microsoft’s latest quarterly financials. Microsoft is expected to reveal the Xbox Series X launch price at E3 this year. Celebrating employer excellence in the video games industry8th July 2021Submit your company Sign up for The Publishing & Retail newsletter and get the best of GamesIndustry.biz in your inbox. Enter your email addressMore storiesReturnal | Critical ConsensusCritics praise Housemarque’s roguelike shooter for fast-paced combat and unforgiving, gorgeous world, but say it misses the mark on some key aspectsBy Marie Dealessandri 9 days agoSony testing PlayStation Plus film and TV offeringPlayStation Plus Video Pass will be available for a limited time in PolandBy Marie Dealessandri 19 days agoLatest comments (1)Roland Austinat roland austinat media productions|consulting, IDG, Computec, Spiegel OnlineA year ago Don’t forget the launch price debacle of the original Xbox back in the day.last_img read more

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