Sony supposedly struggles to keep the PS5 price low, and it could favor Xbox

4 min read

Bloomberg Technology claims that Sony is experiencing some production problems with the upcoming PlayStation 5. The report mentions "scaring parts" as the problem, resulting in a significant push in the costs for the next-gen game console.

The problem is known. Sony is said to have difficulty in getting reasonable prices for reliable delivery of DRAM and NAND flash memory. It's so bad that Sony has reportedly canceled some new features for a mirrorless camera due to the DRAM supply problem (only three companies produce 98 percent of the global stock).

The reason is simple: smartphones. The newest Galaxy S20 line-up from Samsung is huge, and the specifications have only increased in recent years, so the same game consoles are used. Apple cannot be rejected either, because that company is notorious for locking up supply components early and quickly because of its size, influence and position in the market.

Bloomberg Technology adds that there are other costs for the PlayStation 5 that are already locked, including a more expensive than normal cooling system.

With the PlayStation 5 allegedly costing $ 450 per unit, the report suggests a $ 470 price tag for the console to maintain a gross margin comparable to PlayStation 4. That older unit probably costs just $ 381 to make and sells for $ 399, making Sony & # 39; s latest considerably more expensive. Kotaku sees that the prices are even worse for the Australian market after shipping and distribution costs are taken into account.

Surprisingly, this report makes no mention of Microsoft and the Xbox Series X console. The Microsoft console also uses many high-quality components, and the price is not expected to be as low as the One X or One S, which remain as options for consumers. Indeed, a report says the X-series SSD might be DRAM-less – a scoop on this market – that could help Microsoft work around this delivery problem, at least in part. The solution for Microsoft, which is not confirmed, is dependence on Phison & # 39; s newer PS5019-E19T flash memory controller.

At XO19 last year, the head of Xbox Phil Spencer commented: "I would say that an Xbox One generation doctrine is that we will not be out of position or power," suggesting that the company has long and deep concerns on the subject. thought. This confirming, recent reports suggest that Microsoft has added support for the next generation of CFExpress SSD cards for easy, fast (and expensive) storage expansion.

As electronics, smartphones, laptops, game consoles and even smart cars start to absorb more silicon, it is not known what impact this will have on the price of the X series. Many technology companies – including Microsoft – also take into account the COVID-19 Coronavirus outbreak in quarterly guidance for investors (NVIDIA did the same on 13 February).

How Sony deals with its supply problems can be a major problem, especially if the company has to sell "at cost," which undermines revenue. Microsoft does not seem to be worried, but so far we have not heard anything horrible. It is fascinating to see how the prices shake between the two gaming colossi.

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Written by

Emily Parker

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