In a lot of ways, the console wars come down to numbers. How fast is the CPU? How many frames can it pump out at 4k resolution? How many first-party exclusives will it have at launch? But also, how much is the system itself going to be? That's the question Sony is currently asking itself, as factors beyond the company's control are causing the manufacturing costs of each console to be unusually high.
According to a recent Bloomberg report, each PS5 that comes off the assembly line costs Sony about $450, which is kind of a lot. The reason for this is apparently due to high demand for DRAM and NAND flash memory, which Sony finds itself competing for against smartphone manufacturers. Additionally, the PS5's high-end cooling system is "unusually expensive."
In a call with investors, Sony's Hiroki Totok expressed a reluctance to discuss PS5 pricing, as the company would like to "wait-and-see" what price-point Microsoft is going to set for its upcoming Xbox Series X. "Depending upon the price level, we may have to determine the promotion that we are going to deploy and how much costs we are prepared to pay. So it's a question of balance."
Ultimately, Sony might have to make the difficult decision to sell the PS5 at a loss, or risk pricing their next-generation console out of many consumer's reach.
