Report suggests a single PS5 unit costs $450 to manufacture

By Sean Carey,
According to a new report from Bloomberg, Sony is having difficulty in setting a price for the PlayStation 5 and that manufacturing costs have hit around $450 a unit.

PS5 Manufacturing costs

Sources with knowledge on the matter told Bloomberg that a shortage of components is the reason for the high costs. The report suggests that most of the components have been finalised including the cooling system. However, Bloomberg's sources believe the cooling solution to be unusually expensive and that Sony is opting for a more expensive option to make sure overheating isn't an issue.

Sony has struggled with pricing in the past. Not so much with the PS4 that first sold for $399, but when the PS3 first launched, the 20GB and 60B models were priced at $499 and $599. The website iSuppli estimated that the two variations of the console cost Sony over $800 each to manufacture, resulting in the company selling the consoles at a considerable loss. In 2007 Sony reported a loss of around $1.7 billion in 2007 primarily due to the high manufacturing cost of the PS3.

In Sony's most recent earnings call, Chief financial officer, Hiroki Totoki said that the company must keep down costs and has to prepare the right volume of PS5s for launch. He was also undecided on pricing at the time due to competition from Microsoft with the Xbox Series X.
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!