The PS5 is expected to launch towards the end of 2020.
Sony is expected to produce limited units of the console in its first year.
This is because Sony expects to sell fewer units due to the higher price tag.
If information circulating the internet is to be believed, then Sony will produce fewer PS5 in its first fiscal year than the PS4. This is because the price of the console is expected to be higher than the launch price of the PS4 and may put off some customers to purchase the console at launch.
According to Bloomberg, “The PS5’s loftier price tag may also deter initial take-up. 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.”
To put things into perspective, the PS4 had a launch price of $399 and sold 7.5 million units in its first two quarters when it launched back in November 2013. Sony is looking to sell 5 to 6 million units of the PS5 in the fiscal year ending March 2021.
It is the price of the components and not the COVID-19 pandemic that has caused the price of the console to rise. The COVID-19 pandemic has however thrown a wrench in Sony’s promotional plans for the console. This also includes the reveal of the new DualSense controller that will come with the PS5. Sony took to a blog post to reveal the controller as it wanted to stay ahead of leaks that could possibly result as the company started shipping the new controller to developers.
The Bloomberg report goes on to say, “Sony’s strategy, according to several people familiar with its plans, will be to rely on incumbent PlayStation 4 models as a bridge to get new users onto the PlayStation platform’s network services while the PS5 remains in limited supply, the people said.”
It is possible that we will see a reduction in the price of the PS4 and PS4 Pro making them attractive propositions when the PS5 launches. In other PlayStation news, one of the consoles' most highly anticipated games of 2020, the Last of Us Part II has been delayed indefinitely due to the Coronavirus. You can read more about it here. If you own a PS4 and are looking to enjoy some games on it, then you can check out our list of the best PS4 games to play right now, here. You can also check out our comparison between the PS5 and Xbox Series X here.
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Sameer Mitha
Sameer Mitha lives for gaming and technology is his muse. When he isn’t busy playing with gadgets or video games he delves into the world of fantasy novels. View Full Profile
