Editor’s note: This article is from Interface News, author Peng Xin, published with permission from 36 发布.Source: Pixabay According to Bloomberg, sources familiar with the matter said that Sony is still taking a wait-and-see approach to pricing of the PS5 due to rising production costs due to scarce parts.Bloomberg reports that Sony’s biggest challenge at the moment is how to ensure the supply of DRAM memory and NAND flash memory, coupled with mobile phone manufacturers are planning to launch 5G mobile phones, making the two major parts supply even more tight.Previously, due to the competition for DRAM capacity, some Sony products have been affected. For example, Sony this year has reduced some of the original planned new features in its new mirrorless cameras.According to Sony’s previous public information, the PS5 is equipped with a solid state drive for the first time to adapt to the growing game software.The larger the game size, the longer the loading and saving time, and the solid-state hard disk can significantly increase the loading speed and screen rendering speed.Therefore, the new host requires a large supply of NAND flash memory.If the production cost of Sony’s next-generation game console PS5 increases to about $ 450 per unit, the price of PS5 may be higher than consumer expectations.Some analysts predict that PS5 pricing will be above $ 470.The current Sony official website shows that the price of PS4 and PS4 Pro are 2480 yuan and 3180 yuan, respectively, which means that their price will be about 47% higher than PS4; higher than PS4 Pro by about 14.8%.According to research firm IHS Markit, the PS4 released in 2013 retailed for $ 399 and the manufacturing cost was $ 381.At a unit cost of $ 450 and a similar gross margin, the retail price of the PS5 is at least $ 470.Macquarie analyst Damian Thong said that considering that the most expensive PS4 Pro is currently only $ 399.99 and is often sold at discounts, the PS5 is not attractive to consumers.He also believes that consumer expectations for the price of PS5 will be based on PS4 Pro and PS4 prices, and Sony needs to strike a balance between cost control and demand risk.The traditional business model of game consoles is to sell the host computer at a loss, and then make up for it by selling the game software.At present, if the production cost of PS5 is too high, and Sony faces competition from Microsoft, it needs to handle the pricing of PS5 carefully.It was previously reported that the PS5 will be launched in the near future. Its main competitor is Microsoft’s upcoming Xbox Series X. The retail price will be the most critical factor affecting the sales of the next generation of consoles.PS consoles usually determine the price of the console in February of the release year, produce it in the spring, and then sell it in large quantities.On the other hand, game console manufacturers still need to face the supply chain challenges brought about by the new crown virus epidemic.On February 6, Nintendo announced that the production of the Switch and some accessories had been affected, and the supply was delayed.Nintendo has postponed the original scheduled for February 8th to start accepting reservations and cooperate with the new game “Assembly!”The first edition of a special edition Switch designed by Animal Friendship Society is scheduled.The market speculates that the PS5 and Xbox Series X, which will be launched at the end of this year, may also be postponed due to the drag on the epidemic.According to analysis by investment bank Jefferies, the two new models have entered the stage of production preparation, but if the epidemic in Mainland China continues to spread, the relevant factories need to be closed for more than one month or more, which will disrupt the sales plans of Sony and Microsoft’s new mainframe, at leastAffecting the supply of the first batch of mainframes, it may even be necessary to postpone the sale of new machines.
Affected by scarce parts, Sony PS5 may be more expensive
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