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PlayStation 5

Bloomberg: PS5 manufacturing costs pushed to $450 per unit, Sony facing pricing difficulty due to competition and scarce parts

Sources have told Bloomberg's technology vertical that the manufacturing cost for the PlayStation 5 have risen to "around $US450 per unit", which is $669 in local currency.

For comparison, the PlayStation 4 retailed for $399 Dollars and was estimated by IHS Markit to cost $381 USD to manufacture.

"Consumers will benchmark their expectations based on the PS4 Pro and PS4", Thong said.

It's not unusual for consoles to be sold at or near a loss, as the games themselves and subscription services more than make up for it.

One of the biggest problems is supply, with NAND flash memory and DRAM becoming supremely hard to come by.

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

If you're unaware, this Nintendo PlayStation prototype is alleged to be last one of its kind remaining.

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".

Sony has also said that the ongoing coronavirus outbreak has had no impact on PS5 production, unlike the Animal Crossing Nintendo Switch.

The Bloomberg report also includes the nice nugget that a "new version of the PlayStation VR" headset would be released "after the PlayStation 5" was released.

Sony has already canceled some previously planned features for a new mirrorless camera due this year owing to the constrained DRAM supply, several people with knowledge of the matter said.

Sony also believes that this console transition will be a more gradual one than previous generations. It was repaired in 2017 and can now play music CDs, but there doesn't appear to have been any games made for the ill-fated console. If PlayStation 5 has a similar gross margin, its retail price would have to be at least $470.

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. Totoki said that Sony's plan to provide guidance on the gaming business outlook for the new fiscal year is no different from the recent past, meaning said guidance can be expected at the end of April. The company held that meeting in late May a year ago.

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