How much is the PS5 going to cost? That's a question that we simply won't know the answer to until Sony slaps a price point on its next-gen machine, but an interesting new rumour suggests that the console could end up being more expensive than initially planned.
The rumour comes from Bloomberg, citing anonymous sources. According to the article, PlayStation 5 manufacturing costs may be on the rise because of DRAM and NAND flash memory. The components are supposedly in high demand because of next-generation smartphones. In other words, Sony might have to pay more to secure a steady supply of these parts for the PS5.
And with rising manufacturing costs, Sony could be forced into a position where it has to bump up the PS5's retail price. The estimated manufacturing cost of one PS5 is around $450 when taking these components into account. Potentially, this means that the next-gen console's price tag could be creeping closer to the $500 mark depending on how much profit Sony wants to make per unit.
However, Sony won't be looking to profit on console sales alone. Let's not forget that the PlayStation Network is worth an absolute fortune -- it's entirely possible that Sony is willing to sell the PS5 at a loss just so that it can get the system into people's homes and continue to generate huge profit primarily through software sales and subscriptions.
At this point, though, it's probably safe to assume that the PS5 won't be cheap. Even pushing this rumour to one side, we already know that the console is boasting some impressive-sounding selling points -- selling points that are going to require reasonably powerful components.
As always, we're just going to have to wait and see what Sony says. Until that time comes, feel free to bet on the PS5's launch price in the comments section below.
I expect it will be closer to $700 here in Australia. Not something I'm looking forward to but I guess we will just have to wait and see.
Me: Oh look a PS5 post!
It's an interesting article despite some old news and probably some fake news too.
He always makes me chuckle when he quotes Damian Thong though haha 🤦♂️
'they anticipate the transition to be a gradual one'
Isnt that in contradiction with what J Ryan said? Or possibly a misunderstanding about 'transition'?
I think the noise about waiting for Microsoft to sets its price to THEN decide on ps5 price is totally fake news.
In my own head I'd set myself a £399 limit. (factor in a couple of games or a spare controller and you already looking at £500 minimum)
There would have to be some seriously tempting launch games to get me to spend more than that.
Whatever happens I will get one eventually but I personally think they're waiting for Microsoft to announce their prices first and see what kind of reaction that gets (in other words see what they can get away with charging)
The trouble is Microsoft have probably got the same idea so it's a case of who blinks first
I know this is actually a very key point for a lot of people, so I'm not going to make light of the fact that an expensive console is not a non-issue.
However, from a personal standpoint I wouldn't mind if the console was $1,000, not because it's expensive, but because I'm investing for the future, a long future.
When you look at it, even at $1k for up to probably at least 7 years worth of entertainment, that's a pretty good deal.
This would also be on the proviso that the console was made out of decent materials, and had the right parts to amount to that sort of money.
Anyway, I digress, as it's not going to be anywhere near that, but I'd still be happy with $600, even that as a stretch. This is the future of gaming, and modern equipment costs money to manafacture.
I’m pretty sure Sony has a price range it knows it’s going to fall into and what is the lowest they can go (possibly below cost) and high threshold they won’t cross.
I wouldn’t be surprised if they let Microsoft announce price first again. We have no way of knowing if they changed the price of the PS4 in light of the Xbox price. I personally doubt they did though.
@BearsEatBeets The problem with that tit-for-tat approach, is that Xbox is likely doing the exact same. Which means we'll be in the long haul for an actual reveal for pricing. Might not be till last minute.
I've never spent above $400 for a console the day I purchase it and don't plan to. This is fixed hardware that these days is out-dated almost instantly anyway. If PS5 is $450 I'm likely sitting out for a bit, $500 forget it. Same goes for Xbox Series X but that whole situation is even more complicated because it sounds like any big Xbox game I do want to play for the next 3 or so years will be on Xbox One.
This is a new, bizarre feeling for me. I love technology and am always excited for at least one console that is set to kick off a new generation. We have two set to go for late this year, early next and my hype meter is at 0.
Definitely not more than £449.
Let's face it, an equivalent PC is going to set you back about £1200 and that's without any ray tracing capabilities. I've set myself a budget of around £500 for either of the new machines, with launch titles being the deciding factor, then again I may not buy either at launch if the games aren't that exciting
$500 is my expectation. Anything below that and I’ll be a very happy man. But if not, I was expecting and it’s a worthy investment for me since I’ll have it from day one.
@stuzster this sort of reply always confuses me. Fair enough you can’t afford / want to wait a few years but the stuff about bugs and model revisions is just nonsense. I’ve still got my launch PS4 and PS4 Pro and both still work absolutely fine.
@Angelus3K my original is way broke. My pro is also v1 and that too is like a tumble dryer. 2 sides to every story.
@Everyoneatpushsquare Im fully invested in PlayStation because of everyone here. I need to be an early adopter as its my favourite second hobby, after posting on Pushsquare!
Was expecting $500 so this would be fine with me if true!
If people can pay $1,000+ for a smart phone that will be replaced by them in a year or two then they can pay $500-600 for a console that will last 7 years plus.
@WCB i live in switzerland and wont even think how much it will cost. probably get it from amazon germany and collect it over the border.
I will be surprised if it's less than $500.
£600 is my limit.
I know it's unrelated but some people are review bombing dreams. It's at 4.3 right now the user score un metacritic.
@WCB u cnt be serious 700 bucks? sweet jesus!!!
@Lobbo95 just more sad pathetic people, until Metacritic requires you to link your gaming accounts and has some kind of cooling off period for reviews, I will never take it seriously or even look at it frankly as it's next to useless
I mean, given Switch ran into the same issue with Flash NAND costs, even on carts, you DIDNT see this coming?
@stuzster Amen to that. Id rather wait a couple of years, avoid the launch software drought, and pick up a revised model, or a strong bundle deal for less money down the road. The added benefit being that most of the games i'd want to play will be half price or less.
My ps4 backlog is embarrassing anyway, so it will give me more time to work through it.
@pimpjuice if it will be close to $500 US dollars it will definitely be over $600 here easy.
This article mentions PSN as a way to negate additional costs, as well as Sony selling at a loss, but you aren’t taking into account all the hidden costs with shipping a product, such as retailer margins, shipping etc. The components of the PS4 at release ranged in the $380~ range, later selling for $399 at a LOSS. If we look at this figure, you could take from it that it’d cost similar to the total component cost, when sold at a loss (£449), but that then doesn’t take into account the high demand for certain components, which is something the PS4 didn’t have to deal with!
For me personally, I think a price of over £450 is harder for me to justify for a new console. Over £500 and I really will struggle to get it at launch. However, we'll wait and see I guess!
i read an article somewhere, digital foundry i think, that suggested MS would struggle to bring project scarlett to market for less than $700. rumours still persist that lockhart, a cheaper discless version targetting 1440p @ 60fps, is definitely being made, so i suspect that PS5 will fall somewhere in between, $500-$600.
but if manufacturing costs are £400, once you add in worldwide shipping and distribution costs, a roughly 30% retailer margin, and 20% sales tax (for UK).. the "real" cost is considerably more. that's before you add in the possibility of import tariffs. yes, sony may sell at a loss, but they're not going to cut off their noses at the same time.
@Grindagger I’d be surprised if we get a price before E3 time. I would imagine Microsoft will reveal their price at the event again. Sony is the unknown as to whether they go before or after the event. It would be good to get some sort of PS5 reveal before then but we will see. All those February rumours are starting to look like rubbish.
I think Sony may be tempted to gamble on a fast adoption (suggested by J Ryan). It could be worth it to have an initial important loss and that's why they dont want the competition to know the price?
Ps5 will break records vs ps4 launch sales.
I think it's very safe to say both Sony & Microsoft will take a loss, and make that up on software & services. And that will still be nothing like the losses them two took in the PS3/Xbox360 era, they lost billions between them. Sony losing $300 on every unit sold, hence why both dropped exotic architectures for X86. I think the PS5 will be between $399.99 - $449.99 max.
I get what you are saying but I think that's an unfair comparison
Most adults probably budget 40 - 50 $ or £ a month (depending on where you live) for a mobile phone bill as part of their day to day lives.
A console is more of a one off purchase so to pay out 500 - 600 in one hit is a large sum for the majority of people
So around $700 🙀
Never say never but atm I couldn’t justify it.
I'm okay with $500-$600 price for ps5, as long as there isn't big markup in my country, of course ps5 tech has to be great
Also I can sell my ps4 pro, so at least that's $200-$300 discount going to ps5 fund
@Lobbo95 Urgh, really? Why? But hey, I don't know anyone who takes the user review section of Metacritic seriously.
Wasnt there a big thing about ps4 and xbox one being 'Loss Leaders' when they released? Wont it just be the same again?
@leucocyte being saying the same thing for ages... series X high end,high price,series S lower spec and price with PS5 sat nicely in the middle with a good balance of performance and price.
@Danloaded Think the PS3 and X360 were loss leaders but I'm fairly sure the PS4 and Xbone were profitable from day one?
They may take a small hit this time round until their supply streams stabilise but either way round they'll still convert US Dollars into GB Pounds at a 1:1 ratio so we in the UK will end up covering their costs!
i dont give a crap how much it will cost sony. if this happen it will just make me wait for a price drop and not buy day one.
@JJ2 - maybe, but in all honestly i can't see sony going for a $200+ loss per console. if so, i think there'd be some other measures more disagreeable to gamers than a high priced console, and that's hiking the price of new games (eg to $70/£65) and subscriptions. i still think it'll be around $499/€499/£479 though
i was expecting the PS5 (and XBSX too) to sit somewhere between £400 and £500 given some of the tech in it and it sounds like it's gonna hit in that area so i'm OK plus i don't think Sony will go too high, they wouldn't want another PS3 launch situation on their hands would they?
@sanderson72 - the GBP is in a very different place from 2007 when PS3 launched, and 2013 when PS4 launched. using a currency conversion to look at the prices of products between different places tells you nothing about the purchasing power of those currencies (nor the taxes involved in those countries). you might as well compare the price of PS5 in big macs.
@BearsEatBeets Yes, I fear you're right on that. I think it's ok to be shrewd here.
Next generational reveals are extremely pivotal in terms of where the sales end up at the end of the line. This is dangerous ground for these companies whilst they play strategic financial battleships so to speak.
You don't want your figurative air craft carrier sunk before the battles even begun. If you're going to strike first, you better make it such an impression that your competitor can't come back with something more impressive, and if you're going to wait, you better ensure your reveal will blow the socks off your competitors pitch.
Not sure how it will pan out, but I'm confident that Sony have it well in hand, and know how to play this game, and more importantly better than Microsoft can play it.
Time will tell though...
NAND and Flash memory is not only in demand because of smartphones it's in demand because one of Samsungs fab plants had a power cut and it has pushed them back on availability. Especially since they have just launched the S20 smartphone which will be top priority for the memory types, then the pc industry is booming as well with SSDs, M2 drives, GPUs, RAM.
It also means that prices are set to rise quite a bit there are other manufacturers like Micron, but Samsung products are one of the top premiums.
@leucocyte Don't underestimate the value of a loyal consumer base, and the value of the brand that's brought from that.
It's actually a viable business model to sell the consoles at a loss, particularly so if they're taking a significant portion of the market consumer with them.
They'll make that back in subscriptions and rev share percentages on their 3rd party game sales, and exclusivity deals they'll be able to get with that much interest.
It's taking an initial hit, in order to make a killing in the long run. I'm sure the loss won't be as much as $200, but $100 would still be doable.
Edit: Not to mention, mid generation, they'll find a cheaper way to get the same output, and rerelease it as the "slim" or whatever, and then sell it at parity or a marginal profit.
I think most people are expecting $500.00 so it's not that big of a deal.
If they go above $500 though, Microsoft will have a field day and undercut them.
I have been predicting a £500+ price for PS5 for a while. I can't see how they can cram all the features into it for a £350 level cost to consumers. It's interesting, because if you were in the market for a new PC, for example, and added £500 to what you were going to spend, you could get one that ran all the games that a PS5 would run. I'm getting on a bit now, lol, and may well end my console journey with PS4 anyway.
I don't mind the price. It could be around 1000 euro and I'd still buy it if the specs were good enough, but I know that the more expensive it is, the fewer people will buy it, so I'm sure it won't cost more than 600.
For me personally the price is unimportant, I'm buying it day one. I refuse to go back to Xbox since this generation for them in terms of quality games was laughable and it doesn't look set to improve.
I saw a post via Eurogamer of a person claiming that power will attract more buyers by default. Yeah, because that really worked with the OneX, right? The key to success is games. Period.
I've been putting money away for a while now to get a new 4K tv with HDMI 2.1 ports to go with the PS5 so the cheaper the new PlayStation is the better but I’ve thought from the start $499 US £450 UK would be the price point
Definitely. Its software that makes the most money and when you buy a new console you buy new gameS. Chance is launch games line up > ps4 launch line up too.
@GADG3Tx87 I bought the Xbox one X and it’s a fantastic bit of kit but I really don’t like playing games on it. I guess I just prefer the Sony ecosystem and the dualshock 4. On a side note has anyone got their hands on the new DualShock 4 back button attachment?
£499 is where it's at and look forward to the launch at the end of the month
I said about a year ago that it will be 599USD. I still think this is valid, unless they go with a much cheaper hybrid drive instead of SSD.
Wow, here I am happy that it’s supposed to be so inexpensive. At $449 I’m more than happy. I’ll be buying 2 of them and for less than $1,000 is great for me.
Its definitely going to be 500$ .sony is waiting for xbox to announce theyre price at e3.and sony is going to go all out like 👑 king kratos.word ☝ up son
It's not gonna be cheap but its gonna be worth it. Plus I can see them launching their version of Xbox All Access monthly paymwnt plan.
And seems they are not gonna skimp on cooling accordong to the article. So expect the retail deisng to be a more compact more streamlined version of the devkit.
Sony will announce the ps5 price during Ms conference, just BEFORE Spencer announces the SeX price. Haha
Weed is legal in quite a few places, the price can be high all the time if it wants.
NOTE: Joke (as if I actually have to state this)
@GADG3Tx87 Power doesn't mean squat it's games that matter for console owners, and MS again bragging about power yet it won't have any decent games for 2 years because it's purchases of Devs won't have anything yet for launch release. First 2 years it will be gears, Forza halo rubbish like before
@JJ2. Hahaha.that would be amazing.word up son
@Fuzzymonkeyfunk @stuzster Im almost on my PS6 by that time. I hear a lot of positive things about them dont own one though.
I personally cannot wait to see all the rumours put to rest. At least every day that passes gets us closer to the reveal.
£399 is fair game. Anything lower than that is a bonus.
@FearIsUseful Same, everyday I get on to check for new news and it's more irritation than excitement.
I hear what you are saying, but I dunno. I think a lot more people consider a cell phone a necessity than a game console. So that makes the higher prices more justifiable to a lot of people. Me though, I wouldn't pay $1000 for a phone or a console personally.
Remember buying a Saturn with the launch titles for about £475 back in the day at my old games shop in the Elephant & Castle... So £500 for a PS5 wouldn't be too strenuous personally... Any more and I'll happily wait... Have enough of a back catalogue as it is anyway...
Do find the rumour mill becoming tiresome now. I get it... but geez just hurry up already....
@Ken_Kaniff I understand the irritation but I’m more irritated at my own impatience if anything. I have a feeling PS5 will be great, and with anything you anticipate this much you want to have it like yesterday...
@FearIsUseful Yea I agree. The only thing I hate is these rumors got my hype to a ridiculous level, and not to say PS5 wont be good, but I doubt most of these rumors come true. I think that's more of where my irritation comes from. I just want to know what to expect or what not to expect straight from Sony.
tired of Rumors rather just wait to hear it from Sony when they are ready we can all speculate the other day was a Virus will put a stop to everything so...
@Ken_Kaniff agree 100%
Sony could easily have set a date for the reveal at this stage of just even the console no specs or price or release date just the unit the fact they haven't is worrying.
it will not be $500usd, i can promise you that. sony will instead take a $50 loss per console for the first two years on the market and sell it at $400usd. losing $50 per console is a drop in the bucket when you consider sony earns $12b a year on psn alone (not inlcuding physical game sales). a loss of $50 on its first 20m consoles sold is just $1b in losses which is completely nullified by the $24b in revenue from psn over the same time period. nothing to worry about here. ps5 will launch at $400usd if sony has any sense left in them and greed hasn't sucked the soul out of them
@M1359 Fair enough, but I would never use that as a reason not to get one at launch 😉
500 dollars? That's nothing new. We already are expecting about a 500 price tag anyway. Sony wants to match or beat Microsoft's price but we all know the next Xbox will not be below 500. I expect 500 for PS5 or higher
@carlos82 Yeah but a PC doesn't need to be replaced wholesale every generation. You could spend $300 on a new GPU every six years and constantly be way ahead of console performance... Not to mention all your games come over without the need to buy remasters. I think $500 is the max most are going to be willing to pay for a closed-ecosystem platform like PlayStation.
@Anguspuss uk prices will be steep too.
@M1359 my day one PS4 works fine still so does my day one PS4 Pro.
You said $499/€499/£479?
No, I think it is $499/€499/£399
Look at exchange currency so it is possibly for 399 pounds to me.
@TeslaChippie attempting to build a pc with the specs of ps5 would cost you over $1000usd. the tech inside your pc is already outdated and won't get you the minimal load times sony is promising. the reason ps5 can be as cheap as it is is due to economies of scale and sony being able to purchase components in massive bulk. a fan in the ps5 for example would cost sony less than $5 but that same fan would cost an average consumer $40. now apply that model to every component and you soon realize that your precious pc is far more expensive and less powerful than a ps5. these next gen consoels will put the vast majority of pc hardware to shame for the first 3 years on the market — at least until the prices fall in the consumer space.
Isn't the atypical model to sell consoles at a loss and make it up with software attach rates and lower hardware costs in the future anyway? So if they are reporting that it's looking like the PS5 is in the $450 range, shouldn't consumers expect it at the $399 mark?
@M1359 yep👍 I hope I have not just jinxed myself 🙂
I've always said I'd be surprised if it is under 499. Anyone thinking it is gonna be substantially cheaper is a bit deluded.
Given the components are being manufactured in China by all accounts and the recent outbreak of the caronavirus I can see the price being pushed up due to supply shortages.
Sony will sell the console at a loss they do this every generation bar the ps4 as the component costs were fairly reasonable from the jump given the mobile CPU I assume.
I think we will see a price around $650 to $700 AUD this time compared to the $550 we got when the ps4 launched.
If the rumours are true about complete backwards compatibility though I'm sure we are going to see mass amounts of ps4 and pro units flood the second hand market meaning anyone thinking of trading in and up may want to consider selling over the next few months to maximize return but be without a console for a while.
Love your avatar!
@SaikoWaifu2003 well how much then? Already built I'd say it would be around that, buying separately a Ryzen 7 and a Radeon 5700 xt will set you back around half of what I quoted and were still missing a good few parts. For ray tracing you need the Nvidia 20 series cards, preferably the 2070 super to balance cost and performance, not really sure what you mean by not all ray tracing is equal as no other cards support it on a hardware level
@SaikoWaifu2003 no we don't know for certain the specs but there have been many plausible rumours which put it around a certain ballpark if true, the series X in particular sounds a bit of a monster.
As for making losses on the hardware, I'd suggest that both wouldn't mind so much as they make much more money through their storefronts than they did at the beginning of the last generation and that number will only increase. For Sony in particular its paramount to get these out to adopters as fast as possible.
I agree on the RT front with these and aren't expecting anything too special. Personally I am keeping an eye on both consoles but also with a view to maybe just building a PC instead of they don't meet expectations. I've had a go on Quake 2 with full RT on and it's a beautiful thing
@SaikoWaifu2003 you know what, I never really thought about Pro style patches for PS5, that's great way to get people on board early, a bit of Horizon at 60fps and ultra settings, sounds good to me.
We should be good on the exclusive front with a number of obvious names but hopefully they'll spring a surprise and have something new, though I don't see Godfall being the game to get me to buy at launch
@1_W1NG3D_4NG3L The different Sony divisions are renowned for not communicating well with each other, so I would not hold much hope in that.
500 or more and it will probably start flopping like PS3 started to...oh boy this worries me
I'd pay as much as 399 God blessed English pounds for a ps5 and not a penny more
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