# Sony Is Struggling With PlayStation 5 Price Due To Costly Parts

**URL:** <https://onehack.st/t/sony-is-struggling-with-playstation-5-price-due-to-costly-parts/69630>\
**Category:** News & Articles\
**Tags:** tools, gaming\
**Created:** [February 14, 2020, 3:36pm UTC](https://onehack.st/t/sony-is-struggling-with-playstation-5-price-due-to-costly-parts/69630 "2020-02-14T15:36:40Z")\
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**Author:** ![Aina](https://onehack.st/user_avatar/onehack.st/aina/32/167469_2.png) [@Aina](https://onehack.st/u/Aina)\
**Post date:** [February 14, 2020, 3:36pm UTC](https://onehack.st/t/sony-is-struggling-with-playstation-5-price-due-to-costly-parts/69630/1 "2020-02-14T15:36:40Z")

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Scarce components have [pushed the manufacturing costs for Sony’s next PlayStation to around $450 per unit](https://www.bloomberg.com/news/articles/2020-02-14/sony-is-struggling-with-playstation-5-price-due-to-costly-parts), forcing a difficult price-setting decision in its battle with Microsoft, _Bloomberg_ reported Friday, citing sources. From the report: _The Japanese conglomerate is preparing to gradually replace the six-year-old PS4 console, releasing its PlayStation 5 the same holiday season its archrival debuts the upcoming Xbox Series X. Sony typically finalizes a console’s price in February of the release year, followed by mass production in the spring. 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. The PS4, released in 2013 at a retail price of $399, was estimated by IHS Markit to cost $381 to manufacture. With the $450 unit cost and a similar gross margin, the PlayStation 5’s retail price would have to be at least $470. That would be a hard sell to consumers, considering Sony’s most expensive machine now is the $399.99 PS4 Pro and is often discounted, according to Macquarie Capital analyst Damian Thong._
