PS5 price might be $399, but Sony would lose money

The PS5 price has not yet been officially announced, but the odds are looking good that it will cost around $399. However, hitting this price point would also present a tiny problem for Sony: that PlayStation 5 price point would cause them to lose money on every sale.

ALSO: The Nintendo PlayStation auction may result in the SNES CD being the most expensive console ever

Bloomberg reports that Sony is having trouble with the costs of some of the critical components for the PlayStation 5. Future generations of smartphones are eating up all of the DRAM and NAND flash memory on the market, causing prices to spike. This has also raised the estimated production cost of the PS5 to $450.

As a point of comparison, the original PS4 was priced at $399 on release but was estimated to cost Sony $381 to manufacture. While the margins were thin, they were still a profit nonetheless; this counts for a lot in an era where most consoles lose money and the hardware manufacturers need to make up the losses with game sales.

A PS5 price would likely fall between $469.99 and $499.99 depending on final costs if Sony wanted to make a profit, but that might be a bad price point in the modern market. Looking at the way things are going, we’re probably going to get a $399.99 PS5.