The company’s biggest headache is ensuring a reliable supply of DRAM and NAND flash memory. FMTNews Sony DRAM
TOKYO: Scarce components have pushed the manufacturing costs for Sony Corp’s next PlayStation to around US$450 per unit, forcing a difficult price-setting decision in its battle with Microsoft Corp, according to people with knowledge of the matter.
The PS4, released in 2013 at a retail price of US$399, was estimated by IHS Markit to cost US$381 to manufacture. Video game companies often sell hardware at thin margins or even at a loss because they profit from lucrative game software and recurring online subscription services. 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.
Separately, Sony plans to release a new version of the PlayStation VR virtual-reality headset, tentatively scheduled after the PlayStation 5 goes on sale, the people said.
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