PS5: Component shortage proving difficult for Sony to nail down pricing

Gamers waiting for the Xbox Series X are still wondering about the final specifications as well as the price. Meanwhile, Sony is evidently lagging behind Microsoft with the PS5, which is still waiting for its debut. Last week, during an earnings call with investors, Sony Interactive Entertainment (SIE) CFO Hiroki Totoki noted that pricing has not yet been determined. However, he assured consumers that the manufacturer plans to "choose the optimal approach." Unfortunately, sources claim that component shortage just added another problem for the company.

When its predecessor came out, the system managed to draw gamers away from Microsoft due to the pricing. It sold for $399 against the $499 Xbox One, which ultimately placed Sony at an advantage. Despite the inclusion of a new Kinect sensor, most users probably saw it as more of a novelty and went for the PlayStation 4 instead.

A report from Bloomberg took note that Sony normally comes up with the price every February of the year when its new console is set to launch. Mass production soon follows around spring just in time for distribution and retail for the holiday season. Others are also speculating that the Japanese consumer electronics brand is waiting for Microsoft to make the first move before they make adjustments to how much the PS5 will cost when it hits store shelves.

Sources close to the supply chain reveal that smartphone companies are competing against Sony, Microsoft, and Nintendo for NAND flash memory and DRAM. The PlayStation 5 and Xbox Series X are confirmed to have SSDs which is rumoured to greatly reduce loading times for games. As for the cost to build the console, it is estimated to be around $450 due to the shortage.

If the company plans to profit from console sales, the estimated price would likely be at $470, which is considerably expensive for consumers. "Consumers will benchmark their expectations based on the PS4 Pro and PS4," said Macquarie Capital analyst Damian Thong. "If Sony prices above that, it would likely be to balance a need to offset higher materials cost, against risk to demand." The PS5 reveal is speculated to be on Thursday, after SIE's Shuhei Yoshida replied to a fan on Twitter with a "Persona 5 Scramble: The Phantom Strikers banner depicting the game's release date.