PS5 price undecided due to several factors including competition from other platforms

By Sean Carey,
Sony held it's third-quarter earnings call this week during which we had some interesting new information released, including that PS4 console sales had understandably slowed over the Christmas period, with 6.1 million units sold, a drop from 2018 with 8.1 million. There was also a slow down on game and network services revenue with a decline of 20% to JPY 632.1 billion, but again, it's understandable considering we are coming to the end of a console generation.

PS5 Q3 Earnings Call

Sony has also revealed that the company is not yet decided on a price for the PlayStation 5 which is down to several factors, including competition from the likes of Microsoft with the Xbox Series X. When asked a question about what Sony intends to do to have a smooth transition over to the new console generation and what factors it can control surrounding marketing and development, Chief financial officer, Hiroki Totoki said, "First, we must absolutely control the labour cost, the personnel cost. It must be controlled. And it leads to what should be recognized as a cost. We will definitely control that. And the initial ramp-up, how much can we prepare initially? We will work on production and sales. And we will have to prepare the right volume as we launch."

Totoki continued and said that factors out of Sony's control including competition with platforms are stopping the company from revealing a price and any other plans they might introduce, "What is not very clear or visible is because we are competing in the space. So, it's very difficult to discuss anything about the price at this point of time. And depending upon the price level, we may have to determine the promotion that we are going to deploy and how much costs we are prepared to pay. So, it's a question of balance, and because it's a balancing act, it's very difficult to say anything concrete at this point of time."

The PlayStation 5 launches this Holiday period.

Transcription provided by The Motley Fool.
Sean Carey
Written by Sean Carey
Hey everyone! I'm Sean. I have been writing gaming content for various outlets over the past few years while studying a degree in Journalism. I grew up on everything PlayStation — mainly Metal Gear Solid, with a brief foray into the world of Xbox. Nowadays, you'll find me mainly playing multiplayer PC games such as Mordhau, but with the recent addition of the Xbox Games Pass for PC, I'm looking forward to improving my TA Score and completion percentage!