Tuesday, 18 February, 2020

Oculus VR founder claims to be Nintendo PlayStation’s $350k high bidder

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Cecil Davis | 14 February, 2020, 19:45

With the PS5 expected to launch before the end of the year, typically pricing is set before the end of February and before mass production starts in late March. After he left Sony in 1998, he went on to Advanta Corporation and took the Nintendo PlayStation along with him. For example, the PS4 went for a retail price of $399 but was estimated to cost around $381 to manufacture.

During its most recent investor call, Sony exec Hiroki Totok admitted the company was not ready to discuss the PlayStation 5 price publicly - and hinted it would wait for Microsoft to blink first and name its cost for Xbox Series X.

While Sony has not commented on the matter, Bloomberg states that the company had trouble securing enough DRAM and NAND flash memory. Both, which are in high demand with smartphone producers gearing up for their next-generation devices. Also helping out gamers low on cash will be the updated PlayStation Now subscription service, which may help Sony keep the price of the console lower due to the consistent income from the subscription fee. The site indicates that the manufacturing costs of the new PlayStation are now around 450 dollars per unit, which puts the Japanese giant in difficulty, which has yet to announce the price of its new console.

Sony's Chief Executive Officer Kenichiro Yoshida has said the business should be judged by the number of active users, not the number of hardware units sold.

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Most of the components for the console have been locked down, the people said, including the cooling system, which is unusually expensive at a few dollars per unit. Most cooling units for consoles cost less than a dollar, but "Sony opted to lavish more on making sure heat dissipation from the powerful chips housed inside the console isn't an issue".

The company has yet to decide how many PlayStation 5 units it will make in the first year, they added.

Look closely at the screenshot above and you'll get an idea of what the real, release version of the PlayStation 5 console might actually look like.

If Sony were to make a profit on each console sold, the cost of the PS5 would be enormous - $699 in Australian terms, or even higher factoring in expenses from shipping and distribution.