PlayStation 5 Cost Reduction Is “Very Difficult” As Per Sony President

The company does not want to rely on a price cut.

Story Highlights

  • Sony president says cost reduction for PS5 is “very difficult.”
  • Due to technical constraints, reducing PS5’s chip size is comparatively tougher.
  • The company does not want to rely on a console price cut as it wants to ensure profitability.

Cost reduction for the PlayStation 5 is “very difficult” according to the Sony President. In an earnings call, Hiroki Totoki talked about how it’s difficult to miniaturize the console’s die size, lowering the cost of manufacturing compared to the company’s ability to slash the PlayStation 4’s price.

PS5 today is using Nano die that is on single digit. In the past, PS4, the previous version, chip shrink benefit is very difficult to combine unlike older generation. Therefore, cost reduction is very difficult simply. “

As the PS5 enters its fourth year, Sony faces a challenge in balancing when it comes to the system’s price. Shrinking the console’s chip size, a typical way to reduce costs is proving more expensive than previous generations. This leaves few options for the company, with storage potentially being the only area where it might see significant savings. All while component prices are climbing the ladder.

The original PS5 launched at $499, with a digital-only version priced at $399.99. Last year’s PlayStation 5 Slim saw its release with a price tag of $499.99, while its digital counterpart got a slight discount to $449.99.

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During the earnings call, Totoki went on to say that Sony, in any case, doesn’t want to rely on a PlayStation 5 price reduction. He states, “We want to make sure our business is profitable as well as we want to focus on user engagement together with the volume of sales of units.”

Amidst all of this, Sony has revised its sales forecast for the PlayStation 5, going from its premium goal of 25 million consoles to 21 million units. Furthermore, the company will not be releasing any major existing PlayStation franchise titles before 2025.

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Saad is a News writer at eXputer. With vast journalistic experience working for a multitude of websites, Saad currently reports to eXputer with the latest news and dishes out his opinions on a frequent basis. He's currently studying Game and Interactive Media Design, which has further increased his knowledge about the ins and outs of the industry.

Experience: 1+ Year || Covers News Stories on eXputer || Education: Bachelors in Media Science.

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