We all know next-generation consoles will be expensive to produce, and although they may only rise in cost by $100 USD (from PS4’s $399 to PS5’s expected $499), Sony may also be taking a loss on top of that, meaning its cost to manufacture at launch could be somewhere around $699 per unit. This is a throwback to the old days in which Xbox 360 launched at a $300 loss and PlayStation 3 shocked the world with the $599 price point during US Recession only to reveal the cost to produce started out between $999 to $1099 per unit.
Of course, costs go down over time, but in order to provide the quality product that users expect with PlayStation 5, Sony has taken it upon themselves to aim higher. That strategy was not cheap either. Sony representatives in a recent interview confirmed that the majority of the parts needed for PS5 have all been secured and noted that the cost of each part has exponentially higher than usual rates for launch units, citing such devices as Samsung’s upcoming S20, S20+, and S20 Ultra (LTE and 5G variants), as competitors for parts and production space in the few plants capable of the output PlayStation 5 will require.