Report suggests a single PS5 unit costs $450 to manufacture

Bloomberg: PS5 manufacturing costs pushed to $450 per unit, Sony facing pricing difficulty due to competition and scarce parts

PlayStation 5 Manufacturing Costs Reportedly at 'Around $450 Per Unit'

Most companies spend less than a dollar, but the Bloomberg Tech report indicates that Sony opted for a more "lavish" PS5 cooling system, costing a few dollars each. A little over a year later, Olaf left Advanta to join Time Warner - but he left his Nintendo PlayStation prototype behind at Advanta.

This year is going to be huge for gaming, with both the PlayStation 5 and Xbox Series X due to release in late 2020.

The PlayStation 5's advanced graphics card and processors also allow the device to support 8K graphics, in addition to 3D audio according to prior reports.

Console manufacturing is typically a narrow margin or loss-leading endeavour; the PS4 launched with a price point of $399 in 2013, and market intelligence firm IHS Markit estimates manufacturing costs were around $381 per unit. This generation hasn't had almost as many of those devastating console crashes, but PS4 owners are all too familiar with their console sounding like a jet engine when it gets overworked.

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Sony is supposedly having a tough time securing reasonable prices on a reliable supply of DRAM and NAND flash memory.

Sony's experience with the PS3 might even prompt it to price the PS5 below cost, just so it can build up a large player base and earn more on games sales and subscriptions like PS Plus. The next two consoles promise to be particularly powerful, so it will require an excellent cooling system to be sure to dissipate the heat emitted.

On that point, Bloomberg sources said Sony was now taking a "wait-and-see approach" - something the company publicly said as much last week.

Each PS5 will cost around $450 (£345) to make, Bloomberg's sources said - which will affect the price it's then sold at to consumers.

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Let's say Sony wanted to be super competitive with Microsoft.

Sony's next home console may be set for a significant price increase over its best-selling predecessor.

Numerous games launched for the PlayStation 5 will also be available to play on the predecessor machine, so revenue from software and related network services is expected to keep the business performance intact.

Microsoft is widely expected to hold that information back until the E3 gaming expo in Los Angeles in June.

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The survey is only available until 4th March 2020 (T&Cs apply*, United Kingdom and USA readers only), so don't wait too long to take part. The company held that meeting in late May past year.

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