Rumour: PlayStation 5 production costs rise to $450 per unit due to smartphone DRAM demand

Written by Neil Soutter on Fri, Feb 14, 2020 2:11 PM

The next-gen console launches are increasingly looking in peril after a number of unforeseen factors have possibly been affecting both the manufacturing and the costs. Bloomberg is now reporting that Sony is running into significant problems with the PlayStation 5, claiming manufacturing costs have now risen as high as $450 per console, raising the gloomy spectre of a prohibitively expensive next-gen console launch. 

Pricing has yet to be announced for either the PlayStation 5 or the Xbox Series X but it’s expected the final specifications are now locked and mass manufacturing will commence in due course.

With the specs now finalised, Sony finds itself in a tricky position. Supplies of DRAM and NAND flash memory have dried up due to increased demand from smartphone manufacturers, with Samsung’s upcoming Galaxy refresh sporting up to 12GB RAM. This is believed to have led to dramatically increased prices, causing the cost of manufacturing the PS5 to be driven up.

Bloomberg believes practically every component with the PlayStation 5 is now locked down, leaving Sony with little wiggle room. This includes an enhanced cooling which costs considerably more than the cooling found on the PS4.

As it currently stands then, Sony is staring down the barrel of pricing the PlayStation 5 in excess of $470 per unit in order to turn a profit. It leaves the Japanese giant with a fairly obvious problem - price the PS5 high in order to mitigate risk yet reduce sales, or sell the PlayStation 5 at a loss, balancing risk against demand.

Sony is currently saying that the coronavirus outbreak has had no impact so far on PlayStation 5 production, although this is something which could obviously change depending on whether the outbreak is controlled or it escalates. If it’s the latter, we’ve probably got a bit more to worry about than how many PS5 consoles will be available for launch day.

How much do you think the PS5 is going to cost on launch day? Do you think Sony can risk launching with a price as high as $500? Let us know your thoughts below!

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13:39 Feb-15-2020

RAM manufactures are money happy. Prices are rising for 12GB of RAM going into phones that can fit into your pocket? Are you kidding me! 8gb of ram is eight years old news and should be a drop in the bucket for our wallets. I woefully overestimate the improved quantity in random access memory. By all accounts we should have at least 64GB in consoles. Why do only 1 Terabyte hardrives come in a $1500 laptop? There is too little that is complementary to at 2020 computer buying experience.

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20:00 Feb-15-2020

i know you're joking


but this is f*cken too much for me

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09:28 Feb-15-2020

$500.00 USD? Ouch....that put it in the $650.000 to $700 CDN range? Wow....might as well buy a no frill motherboard and then add a GTX 1660 video card, slap in 8GB ram and there is your PS5 folks...

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13:27 Feb-15-2020

Question is, what CPU could you get with what's left over provided you didn't have to buy a PC case, PSU, keyboard, mouse, speakers/headphones (assuming a new build with no previous parts used).

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21:05 Feb-14-2020

idk


I think it'll cost $500. Both Sony and Microsoft are willing to sell it at a loss to make it up for the services.

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13:27 Feb-15-2020

I concur.

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17:56 Feb-15-2020

It wouldn't be the first time they sold at a loss. The Xbox 360 and PS3 were initially also sold at a loss. In addition, as you've mentioned, they now have the option to profit from services. On top of PS plus and Xbox live, they have many options available to them nowadays to profit, unlike seventh gen. So I also concur.

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17:14 Feb-14-2020

It will cost $500, I'm calling it

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00:42 Feb-15-2020

I second that

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06:35 Feb-15-2020

I third that...

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20:01 Feb-15-2020

I forth that. :)

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15:33 Feb-17-2020

Hi five that!

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junior admin badge
17:45 Feb-17-2020

Not going to 86 that.
But love the flow.

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16:38 Feb-14-2020

The end of the second sentence in the 4th paragraph is missing ("This includes an enhanced cooling which costs considerably more than the ").

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16:17 Feb-14-2020

Here in Argentina the PS4 Slim costs up to U$S700

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21:19 Feb-14-2020

Mostly because your currency is volatile AF + your tax policy + 30% surcharge on dollar purchases with CC. Its insanity. Cristina los va hundir mas en el pozo.

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18:27 Feb-15-2020

I sold my ultimate player edition with 2 dualshocks + 3 games for 200$. New PS4 slim costs about 240$, noone really wants it here in Europe.

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11:23 Feb-20-2020

That price is insane. My sister managed to find a deal on a new PS4 Slim for about $200US.
Are the PC components equally expensive

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16:10 Feb-14-2020

I am not saying that the prices for consoles should go up but considering the hardware in PS5 is similar to a RTX 2070 and Zen2 CPU, this tiny price hike shouldn't be an issue.

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17:14 Feb-14-2020

We still don't know what GPU is similar with PS5, but I doubt it will be with a 2070, more like 2060

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12:23 Feb-18-2020

Actually I read it in several sources that the GPU will be similar to RTX 2070. Of course it is all a rumor at this point.
But even with all the optimization consoles have to be a dedicated gaming system, if they want to reach 4k @ 60 fps they will need an RTX 2070 at minimum or that claim will fall apart quickly.

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09:37 Feb-15-2020

What? Similar to an RTX 2070? Not a chance! More like a 1660 Super tops....

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10:34 Feb-15-2020

If i will going to play games at 4k/60 like the leaks and infos are saying then there is no way that the gpu will be similar to 1660 super. It will be more like rtx 2070. And if it will also have rtx capability in games then....

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15:41 Feb-14-2020

Only 450$, i thought it was going to be more expensive. Don't forget it has a SSD.

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15:52 Feb-14-2020

Only acceptable if it's a 1 terabyte SSD atleast

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14:26 Feb-14-2020

If production costs $450, i don't think they can sell it under $500. we must consider logistics, taxes, profit margin for sony and also retailers.

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16:01 Feb-14-2020

Typically consoles sell at a loss at launch. That being said, if $450 is just pure "production" cost, I guess it does not factor in R&D costs and marketing costs.

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16:24 Feb-14-2020

They have historically, yeah, but I believe the Xbox One and PS4 were sold at profit at launch, so not sure if they'd be willing to go back to the old ways

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20:06 Feb-14-2020

Pretty sure ps4 was sold at a loss for sony but keep in mind they make a ton of money off psn and every game sold on the system.

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21:22 Feb-14-2020

Well if Sony's still betting on the platform business model they should be confident enough to sell at a loss. Whilst Microsoft betting on the ecosystem business model would be planning for lower hardware sales due to price so long as they gain the ecosystem customers to make up for it.

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14:39 Feb-20-2020

The price is acceptable, why are you complaining..

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15:05 Feb-20-2020

It depends on where you live. For some $500 isn't much, as a person from Croatia I know ppl that work for that amount a month.

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