Sony PlayStation 5 Dilemma: might be too expensive

With an AMD powered Playstation 5 many people are looking forward to the new console release. Sony, however, is fighting the high price, as it is an expensive machine to build. 

The production costs are not only raised by expensive DRAM and NAND memories, but also by the cooling system, it is indicated that the current production price of the Playstation 5 is already around $450, reports bloomberg:

PlayStation 5’s retail price would have to be at least $470. That would be a hard sell to consumers, considering Sony’s most expensive machine now is the $399.99 PS4 Pro and is often discounted, according to Macquarie Capital analyst Damian Thong.. The company’s biggest headache is ensuring a reliable supply of DRAM and NAND flash memory, with both in high demand as smartphone makers gear up for fifth-generation devices, according to people familiar with Sony’s operations.

“We must keep PlayStation 5’s bill of materials under our control and we need to make the correct number of units in the initial production,” Sony’s Chief Financial Officer Hiroki Totoki said at an earnings briefing earlier this month.