Good Luck Finding a PlayStation 5 on Launch: Sony Limiting Initial Production Run Due to High Costs

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Image: Sony

Nobody knows when Sony’s next-generation console will debut yet, but one thing’s for sure: it won’t be easy scoring one on launch day. According to Bloomberg’s sources, Sony is planning to limit the initial production run of the PlayStation 5 due to its costly components, which have driven the cost of the system up and, potentially, reduced its appeal among buyers.

“The PS5’s loftier price tag may…deter initial take-up,” Bloomberg reported. “Game developers who’ve been creating titles for the next PlayStation anticipate its price to be in the region of $499 to $549, and Bloomberg Intelligence’s Matthew Kanterman points to increased component costs pushing up the price required for Sony to break even. Sony has struggled with its price-setting decision for the PS5 because of scarce components.”

Sources say that Sony will make only 5 to 6 million units of the PlayStation 5 in the fiscal year ending March 2021. These numbers are considerably lower than the PS4’s, which launched in 2013 and managed to sell 7.5 million units in its first two quarters.

In order to offset the PlayStation 5’s slower and more gradual adoption, Sony will reportedly double down on its predecessors, the PS4 and PS4 Pro, which are ubiquitous and in heavy supply. “The company may cut these prices around the time of the PS5 launch to stimulate new subscribers for the PlayStation Plus membership program and PlayStation Now game-streaming service,” sources said. “Sony’s Chief Executive Officer Kenichiro Yoshida has said the company will aim to increase recurring revenue rather than one-time hardware purchases.”

“I think both the PS5 and Xbox Series X may end up at US$450 even though they would lose money at that price,” said Damian Thong, an analyst at Macquarie Capital.

Tsing Mui
News poster at The FPS Review.

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