Sony Reportedly Struggling to Keep PS5 Hardware Costs Down

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According to Bloomberg's sources, Sony opted for unusually expensive cooling systems. Bloomberg reports that the PS5 is costing Sony around $450 per unit.

With the PS5 expected to launch before the end of the year, typically pricing is set before the end of February and before mass production starts in late March.

With the PS5, the company is taking a wait-and-see approach, said the people, asking not to be named because the details are private. Alternatively, it could match the price of the PS4 Pro at $399.99, take a big loss on every console, and hope to quickly reduce manufacturing costs over the first couple of years.

With less than a year to go before launch, Sony should have already secured its supply of parts - something which sources confirm, but the only thing that hasn't been settled on is the number of units it'll churn out during the first year.

However, according to "people within the PlayStation business unit" a key factor in deciding the PlayStation 5 retail price will be what Microsoft decides to do with the Xbox Series X's pricing. However, we're expecting the PS5 to be at least $499 if Sony wants to make some semblance of a profit. The more powerful hardware also requires a more elaborate (and expensive) cooling system than past Sony consoles.

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

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The ongoing coronavirus outbreak has had no impact so far on preparations for PlayStation 5 production, they said.

It turns out that around 200 hybrid Nintendo / Sony PlayStation consoles were ever produced for testing purposes and most of these were destroyed when the two companies parted ways.

Outside of PlayStation 5, Bloomberg reports that Sony Interactive Entertainment also plans to release a new version of PlayStation VR sometime after PlayStation 5 goes on sale.

Sony also believes that this console transition will be a more gradual one than previous generations.

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

If the company takes longer than usual, analysts may look to its next investor relations meeting to glean hints about the new console's retail price.

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