Sony Entertainment Network

The price of Sony’s forthcoming PlayStation 5 is being driven up by the cost of scarce components. According to a Bloomberg report, the manufacturing costs for Sony’s next-generation console has increased to around $450 per unit.

For context, the PS4 cost around $381 to manufacture and retailed for $399 when it released in 2013. With a similar cost margin, this could mean that the PS5 might retail for at least $470. Now it looks as though the Japanese company faces a difficult price-setting decision, particularly because its PS4 Pro often sells at a loss, as low as $299.

Sony normally settles on the console’s price in February of the release year, then goes into mass production in the spring. According to Bloomberg’s source, “the company is taking a wait-and-see approach” this time around.

Macquarie Capital analyst Damian Thong explained that “consumers will benchmark their expectations based on the PS4 Pro and PS4 … If Sony prices above that, it would likely be to balance a need to offset higher materials cost, against risk to demand.”

Weekend Staff Writer

Isabelle is an Australian writer based in Berlin.