Citing High Component Costs, Sony's PS5 Will Launch at High Price, Low Unit Volume
Sony (NYSE: SNE) is scaling back the early production runs of the upcoming PlayStation 5 gaming console, according to Bloomberg's anonymous insiders. The company expects moderate consumer interest in the console at launch due to a big-ticket price tag.
Sony has set up production runs and component orders consistent with roughly 5 million or 6 million PS5 units over the system's first two quarters, down from 7.5 million PS4 sales across that generation's first two quarters. Sources said that Sony's production capacity has not been limited by the coronavirus so far, but that tight supplies of several key components will force the Japanese consumer electronics giant to launch the PS5 at an uncomfortably high street price. The initial price could land anywhere between $499 and $549 per unit, dramatically higher than the PS4 console's launch price of $399.
This would put the PS5 on a comparable footing to Microsoft's (NASDAQ: MSFT) upcoming Series X console, which is widely expected to launch in time for the holidays at a price point near $450.
Source Fool.com
