What Is Impacting The PS5 Launch Price?

Yes, the PS5 is finally on the horizon, and it promises to be a big leap for the industry. For hard-core gamers, speculation has already been fierce as to what the new generation will bring. Or to be more specific; what the cost of the new console will be.

Sony have released some details on the hardware that will be in a PS5, and it is rather impressive. 8 core CPUS are on the cards, as well as SSD drives. This ultimately means that load times are going to be significantly less, or may even be done away with entirely. But, these components aren’t cheap by any stretch of the imagination. Plus, there is the added headache of DRAM. DRAM is also used in smartphones, which means that demand is through the roof, forcing prices higher than ever before.

What this means for Sony, of course, is that the cost to manufacture each unit is going to be bumped up, and that, naturally, will impact the selling price.

A Tough Sell

As far as Sony are concerned, and as far as their business model goes; they generally make their money on the games, rather than the console itself. Though, covering the cost of the console is also certainly desirable. When the PS4 released, it cost around $381 to make each unit. It sold at $399. Fair enough. Though, if you’re one of those that plays bingo games for money, rather than Call of Duty for kills, the hype may have passed you by.

The problem with the PS5 is that rough estimates suggest that each unit will cost around a whopping $450 to create. This means that retail price should be $470. That is just a touch more than most are willing to spend on a console, and may well hamper early adoption. Sony are aware of this, and it is causing them some concern. Normally the tech-giant confirm a price in February of a release year, and start mass production in time for the holidays. This time, they have not yet dared decide on a price.

The Standoff

Microsoft are also due to announce the price of their Xbox Series X, which will be the direct competition to the PS5. They are also not budging on an announcement, apparently waiting for Sony to make the first move. So what we have is a genuine tech industry standoff, with two mega-corporations sitting, eyeing one another, and waiting. Early indications are that the Xbox Series X will also cost between $400 and $450, but with no certainty at this point.

Of course, with the months ticking by one company or the other will have to make the first move. As far as gamers go, this is great news. With such fierce competition, one or the other company may even decide to sell their console at a loss, simply to offer a better price than the competition. Which just goes to show how important it is to have a competitive market in the tech world.