PS5 production is underway and Sony would have revised its initial plans for the launch of its new console, increasing from 5 to 10 million units available in the fiscal year ending March 31, 2021.
Bloomberg Japan cites internal sources to highlight the change in strategy at Sony. It seems that at the headquarters of the Japanese firm they were concerned with the costs of some of the console components, which will end up causing a fairly high manufacturer’s suggested retail price (MSRP).
The information speaks of a $ 450 manufacturing cost. The most expensive part of the console would be its memory and storage components. Just the GDDR6 memory and the PCIe 4.0 solid state drive would cost a whopping $ 250.
That is why in early spring comments came from an alleged stock limitation for the launch. Simply put, Sony would want to start off on the safe side fearing the final sale price would scare gamers. There is also concern about the global economic situation that the COVID pandemic may cause and doubts about its impact at the end of the year when the console is launched.
PS5 production and prices
We do not know if Sony has managed to reduce component costs, but the latest news (unconfirmed, although they have also published it in Nikkei) is that, the production of PS5 will double to put on the market 10 million units in the fiscal year.
Sony has no manufacturing problem. We already told you that the company has one of the most advanced factories for consoles. Located on the outskirts of Kisarazu across the bay from Tokyo, the group’s manufacturing arm, Sony Global Manufacturing & Operations, is fully automated, capable of assembling two consoles per minute.
As for the final sale price, the information speaks of prices more expensive than those we had been driving, $ 499 for the PS5 Digital Basic Edition (no discs) and $ 549 for the Blu-ray version. A very high price that will add to that of games, also increased for the next generation of consoles.
Considering that the cost of the components is 450 dollars and we must add the cost of research, development, manufacturing, marketing and distribution. Sony has very little margin left. And if the price rises it will not sell enough units.
It should be noted that most consoles are sold at cost (or even at a loss) at launch. Manufacturers make up for this with revenue from games, peripherals, and accessories, and by cutting manufacturing costs in subsequent quarters. We will tell you, but prepare the portfolio because jumping to the next generation of consoles will not be cheap.