Sony could repeat 2013's big sweep by making the PlayStation 5 cheaper than the Xbox Series X.
In its recent Q3'19 earnings Q&A session, Sony had some interesting remarks on the PlayStation 5's pricing. The company isn't ready to reveal any specifics on the PS5 yet (that rumored February event probably isn't happening), and price is something that's hard to lock down for a number of reasons. One big reasons is competition.
Sony Chief Financial Officer Hiroki Totoki hints the PS5's price tag may not be revealed until after the Xbox Series X's. Sony could wait to sweep in like it did last-gen with a $399 price tag and completely dominate next-gen all over again.
"The PS5's cost is not very clear or visible because we are competing in the space. So it is very difficult to discuss anything about the price at this point in time. And depending on the price level, we will have to determine the promotion that we are going to deploy and how much cost we are prepared to pay," Mr. Totoki said in the Q&A session.
Mr. Totoki goes on to highlight the basics of a hardware business, from production and manufacturing to distribution, sales, and marketing. Sony plans to keep everything evened out in an effort to maintain profits even though it typically sells every PlayStation at a loss.
There's a myriad of other factors that will affect the PlayStation 5's overall consumer cost.
How much the system takes to actually produce, where they are produced (the spreading coronavirus in China could impact PS5 console manufacturing), how much Sony spends on advertisements, R&D costs of prototypes and hardware systems and games development, and even potential regional tariffs will all impact the PS5's baseline price.
"First, we must absolutely control the labor cost, the personnel cost, and the initial ramp up...how much can we prepare initially, and we will work on the production and the sales costs. We will have to prepare the right volume.
"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 in time. But when I said smooth transitions between console generations, we mean that we will definitely choose the optimal approach to ensure profitability in the life of the PlayStation 5."
The console will release in Holiday 2020, and it may cost $499.
Check below for more info on everything we know about the PlayStation 5 so far:
PlayStation 5 specs and details:
- Custom SoC with second-gen Navi GPU, Zen 2 CPU
- 8-Core, 16-thread Zen 2 CPU at 3.2GHz
- Navi GPU at 2.0GHz with 36 Compute Units
- Navi, Zen SoC uses new AMD RDNA 2.0 architecture
- Ultra-fast SSD
- Support for 4K 120 Hz TVs
- Ray-tracing enabled
- 8K output support (for gaming)
- Plays all PS4 games
- Separate games that ship on BD-XL Blu-ray discs
- New controller with extensive haptic and tactile feedback
PlayStation 5 Coverage:
- PlayStation 5 could use Samsung's 980 QVO SSDs
- PlayStation 5 is beating Xbox Series X in dev kit form right now
- Hardly any devs are making next-gen PS5, Xbox Series X games
- Sony working on new horror IP for PlayStation 5
- PlayStation 5 devkit UI possibly leaked
- Leaked PlayStation 5 concepts show weird X-shaped case
- Sony's first-party PS4 exclusives are coming to PC
- PlayStation 5's new DualShock 5 may be usable on PS4
- Sony skips E3 2020, has two major events planned for February
- Next-gen console exclusives will be few and far between through 2021
- PlayStation 5's biggest features have yet to be announced, Sony says
- PS4 has sold over 1 billion games and 106 million consoles
- PlayStation 5 backward compatibility should support every PS4 game
- Sony reveals the PlayStation 5...logo
- New trapezoidal PS5 render is an expensive accident waiting to happen
- A $399 PlayStation 5 will conquer next-gen
- PlayStation 5 to outsell Xbox Series X in 2020, analyst predicts
- PS5 may only enhance PS4 games, legacy PS1, PS2 and PS3 games unlikely
- PlayStation 5 prototype dev kit console gets V-shaped clean
- Sony: The future is coming at CES 2020
- PlayStation 5 GPU: 9.2 TFLOPs with 36 custom Navi compute units
- PlayStation 5 GPU emulates PS4, PS4 Pro with special modes
- PS5, Xbox Series X SSD may use software-defined flash to boost speeds
- PS5's SSD is 'exceptionally powerful,' may beat Xbox Series X speeds
- DualShock 5 renders show new trigger design, USB-C, ergonomic shell
- PlayStation 5 to support 8K gaming, Sony confirms
- New PlayStation 5 renders show off radical different design, again
- Leaked PlayStation 5 ad prices console at $1,000, is totally fake
- Sony seeks a new Head of Strategy for Worldwide Studios
- Leaked PlayStation 5 devkit photos show new DualShock controller
- PS5, Xbox Scarlett SSD may use Optane-like ReRAM to supercharge speeds
- NVIDIA G-Sync monitors to improve PlayStation 5 and Xbox Scarlett
- PlayStation 5: Everything We Know So Far
- PlayStation 5 confirmed to have 8C/16T Zen 2 CPU from AMD
- PS5, Project Scarlett may use Samsung's 6th gen V-NAND NVMe SSDs
- PS5 backward compatibility confirmed, will play PS4 games
- Sony's next-gen PlayStation 5 has 4K 120Hz output support
- PS5, Project Scarlett to hit over 10TFLOPs of power, sources say
- PS4 will be supported into 2022, to live alongside PS5
- Sony: ultra-high-speed SSD is 'the key' to next-gen PS5
- PS5 dev kit rumor: 'ultra-fast RAM', Navi GPU with 13 TFLOPs
- PlayStation 5 rumored to ship with 2TB of super-fast SSD for $499
- Insider: PlayStation 5 dev kit faster than Xbox Scarlett right now
- PS5 cartridges aren't real, patents are for Sony kids toys
- PS5's SSD may benefit PS4 games the most
- PS5 powered by Navi in 2020, AMD making Navi with Sony input
- Cloud-powered PlayStation controller may let you play free game demos
- Gran Turismo 7 is a PlayStation 5 launch title: launches Nov 20, 2020
- PS5 confirmed to support 8K video, ray tracing, all on Navi
- PlayStation 5 rumored to cost $499, launches November 20, 2020
- PlayStation game demos are coming back with Sony's ambitious new plan
- PS5 controller: Built-in mic, USB-C, no lightbar, ergonomic design
- PlayStation 5 concept video shows totally new design
- Sony solves PS5's biggest issue
- Sony: PS5 development going according to plan
- New Viking Assassin's Creed may be next-gen console launch game
- AMD working on 'secret sauce' for next-gen Xbox/PlayStation
- The first real photo of a PlayStation 5 dev kit appears
- Next-gen PS5/Xbox Scarlett open-world game: 'best real-time graphics'
- Sony restructures workforce to prepare for PS5
- PlayStation VR 2: built-in cameras, wireless, ready for PS5
- PS5 games will ship on 100GB Blu-ray BDXL discs
- PS5 and Xbox Scarlett will both handle ray tracing differently
- PlayStation 5 could feature AI-powered 'PlayStation Assist'
- Sony won't abandon singleplayer story-driven games on PS5
- PS5 rumor: GPU is nearly as powerful as RTX 2080, GPU clocked at 2GHz
- PlayStation 5 rumored to be unveiled on February 12, 2020
- Sony to raise PS5 cost thanks to U.S. tariffs
- > NEXT STORY: WB's new Batman game is a 'soft reboot' of the Arkham franchise
- < PREVIOUS STORY: Rockstar co-founder Dan Houser is leaving in March 2020