Sony is also thought to be using a relatively expensive cooling system for its new console. But a report from Bloomberg suggests that right now, Sony is dealing with a part scarcity issue that is pushing the cost of the PlayStation 5 all the way up to $450.
Just how high Sony will be able to push its price for the PlayStation 5 will be contingent on its direct competitor, Microsoft, which is planning to release its next generation Xbox around the same time. This follows with mass production during the spring.
With the PS5, the company is taking a wait-and-see approach, said the people, asking not to be named because the details are private.
Console manufacturing is typically a narrow margin or loss-leading endeavour; the PS4 launched with a price point of $399 in 2013, and market intelligence firm IHS Markit estimates manufacturing costs were around $381 per unit.
But if Sony is indeed struggling to source cheaper components, this may narrow the company's options on how flexible it can be.
Huawei is done with Google for good
However, company spokespersons outside of Austria shared different opinions to other western journalists. Huawei's plan is to create a third smartphone ecosystem based on Android, but without Google's services.
As a PC gamer, is there a good reason to buy one of these consoles? The website iSuppli estimated that the two variations of the console cost Sony over $800 each to manufacture, resulting in the company selling the consoles at a considerable loss. Of course, until Sony decides to say more about the PS5, we won't know much about the PS5 cooling system.
The ongoing coronavirus outbreak has had no impact so far on preparations for PlayStation 5 production, they said.
Some big questions remain as Sony and Microsoft jostle for your affections - not least, specifics around the launch software line up, price and release date. Sega was first to release a CD addon for the Mega Drive / Genesis console in 1991, and Nintendo had to ask Sony (one of the original creators of the CD format) to help with the development of a CD-based addon for the SNES console.
Microsoft and Sony are both expanding their respective online subscription services, revenue from which may allow them greater flexibility on hardware pricing. Totoki said that Sony's plan to provide guidance on the gaming business outlook for the new fiscal year is no different from the recent past, meaning said guidance can be expected at the end of April.