Skip to main content

PS5 Price Predicted to Go up to $549 With Limited Launch

(Image credit: Sony)

A report from Bloomberg today claimed that the PS5 price could be higher than anticipated and that launch quantities will be lower than Sony has previously said, shedding light on a potential rocky start for the next generation of gaming.

In late March, Sony told Bloomberg that it “doesn’t see any notable impact” from the coronavirus outbreak on the PS5 launch, and while that may be true, the publication is now warning that consumers should expect shortages regardless.

Based on anonymous sources who are “familiar with the matter," Bloomberg reported today that Sony is planning to produce “far fewer units” of the PS5 for release than it had for the PS4. 

Bloomberg said Sony is "limiting its initial production run in part because it expects the PS5’s ambitious specs to weigh on demand by leading to a high price at launch." It added that the while COVID-19 didn't hurt production capacity, it interrupted marketing plans.

Other sources involved in the console’s supply chain gave Bloomberg specific numbers, pointing to Sony planning to make 5 -6 million units of the PS5 in the fiscal year ending March 2021. That's over 1 million units short of the 7.5 million PS4 consoles that the company sold in just the first two quarters after the system's release.

The announced PS5 specs are already somewhat weaker than the upcoming Xbox Series X specs. Unnamed game developers who have been working on titles for the system reportedly told Bloomberg to expect the PS5 to release with a price tag “in the region of $499 to $549,” which exceeds the outlet’s previous estimates of $450.

However, video game consoles have historically sold at a loss to encourage broader platform adoption, leading analysts like Macquarie Capital’s Damian Thong to say that “I think both the PS5 and Xbox Series X may end up at US$450 even though they would lose money at that price.” 

Bloomberg Intelligence analyst Matthew Kanterman also suggested that increasing component costs continue to push up the price required for Sony to break even on the console. This could jeopardize the more powerful--and, thus, likely more expensive to produce-- Xbox Series X if Microsoft wants to match prices with the PS5. 

Suppliers are already shipping PS5 components to assemblers, who are set to begin mass production for the console by June, Bloomberg noted. However, the outlet's sources warned that “PS5 production volume could still change depending on the COVID-19 situation,” with the publication adding that travel restrictions are currently preventing Sony engineers from flying to China to direct final assembly adjustments.

  • watzupken
    To be honest, the high price is not unexpected since its using the more cutting edge technology even at this point in time. Things like RDNA2 is not even open to public sale, and the consoles are the first to get it. Also the use of customized NVME SSDs will also boost the prices over previous gen models all using slow mechanical drives. Yet despite the rumored prices, it is still decent as compared to a laptop/ mini desktop with somewhat similar specs.
    Reply
  • deesider
    With the high performance of the GPU, at launch it'll be far better value for money than any mini-desktop at a similar price.

    I'm a PC gamer myself, but I'm always envious of the performance per dollar a console can provide.
    Reply
  • Deicidium369
    watzupken said:
    To be honest, the high price is not unexpected since its using the more cutting edge technology even at this point in time. Things like RDNA2 is not even open to public sale, and the consoles are the first to get it. Also the use of customized NVME SSDs will also boost the prices over previous gen models all using slow mechanical drives. Yet despite the rumored prices, it is still decent as compared to a laptop/ mini desktop with somewhat similar specs.
    RDNA is just a different way of looking at data on a video card - not like it's any different at all from any other piece of silicon. The custom form factor SSDs are ridiculous... Will end up with both of them, but not at launch.

    Bought the current gen at launch, had maybe 20 hours on them, gave to bro in law - bought the refreshed models - have maybe 20 hours on them - already worn out a Nintendo Switch in the meantime. Will wait for about a year (will take that long before you see games with significant improvements over current games)... and then buy both.
    Reply
  • Deicidium369
    deesider said:
    With the high performance of the GPU, at launch it'll be far better value for money than any mini-desktop at a similar price.

    I'm a PC gamer myself, but I'm always envious of the performance per dollar a console can provide.
    Absolute performance is all that matters - "Yeah this card sucks, but it was really really cheap".
    Reply
  • cryoburner
    $550 wouldn't actually be all that high compared to the PS3. The PS3 launched for $600 for the 60GB model, and $500 for the cut-down 20GB model (which lacked wi-fi and HDMI), and that was back in 2006. Adjusted for inflation, those would be around $770 and $640 in today's currency. Of course, that console didn't sell particularly well until later in its product cycle either, after the price had dropped substantially, giving the less expensive (and generally better performing) XBox 360 the chance to grab a large portion of the console market that generation.
    Reply