Update: 16 September 2020, 10:53 AM: Sony reached out to GamesIndustry.biz and provided a statement regarding the production issues. The statement reads, "While we do not release details related to manufacturing, the information provided by Bloomberg is false. We have not changed the production number for PlayStation 5 since the start of mass production."
Original Story: Microsoft blinked first and announced the price and availability of the Xbox Series S and Xbox Series X including the India price and availability. While Sony has had a product, page live for the PS5 on Indian e-commerce websites, price and availability of the console still remain a mystery. According to Bloomberg Intelligence analyst Masahiro Wakasugi, “The full PS5 console may be priced as low as $449 while the slimmer digital-only version may dip below $400.”
While many have suggested different price points for the PS5, it is clear that Sony will not charge more than $499 for the PS5 as that is where Microsoft has priced its flagship Xbox Series X (Rs 49,990 in India). While information circulating the internet suggests that it costs Sony $450 to make a PS5, it is possible that Sony would not want to take a loss on each unit sold and sell it at cost – $449 undercutting the Series X by $50, internationally.
The Series S, on the other hand, is quite aggressively priced at $299 (Rs 34,990 in India) but brings with it a considerable reduction in power when compared to the Xbox Series X and the PS5 Digital Edition. The PS5 Digital Edition is still a PS5 just without the disc drive. If Sony prices the Digital Edition PS5 at around $350, it would make for a compelling alternative Xbox Series S. However, the official price of the PS5 and the PS5 Digital Edition are still unknown.
Microsoft has announced that the Xbox Series S and Series X will be priced at Rs 34,990 and Rs 49,990 respectively. How much the $50 difference in price means for India remains to be seen but heavy taxes levied on consoles in India means we can expect the PS5 to be close to Rs 50,000 and the Digital Edition somewhere close to Rs 40,000. Note that this is just us speculating.
The PS5 has reportedly been facing production issues as well. According to the Bloomberg report, “production yields as low as 50% for its SOC, which have cut into its ability to produce as many consoles as it wishes, said the people, who asked to remain anonymous because the deliberations aren’t public. Yields have been gradually improving but have yet to reach a stable level, they added”.
Sony has reportedly cut down the production of the PS5 from 15 million units ending March 2021 to 11 million units. Sony started 2020 with conservative figures for the PS5 then decided to increase production in July. This is because more people are spending time at home and gaming due to the ongoing pandemic and Sony anticipates high demand for its next-gen console.