Scarce components have pushed the manufacturing costs for
Sony Corp.’s next PlayStation to around $450 per unit, forcing a difficult price-setting decision in its battle with
Microsoft Corp., according to people with knowledge of the matter.
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The PS4, released in 2013 at a retail price of $399, was estimated by
IHS Markit to cost
$381 to manufacture. With the $450 unit cost and a similar gross margin, the 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.
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People within the PlayStation business unit said a key factor in deciding the ultimate PlayStation 5 retail price will be where Microsoft sets its price for the next-generation Xbox Series X. Microsoft is widely expected to hold that information back until the E3 gaming expo in Los Angeles in June.