Who could have seen this coming?
No matter what your entry point into gaming, it’s easy to say that unless you’re the type of chap who can afford an ostrich omelette for breakfast every morning then your first step into owning your own console was probably not cheap. Whether it was the SEGA Megadrive or the PlayStation 4, having a dedicated machine cost the prettiest of pennies to own.
We’re on the verge of a new console gaming era, and you’re most likely already saving up to grab either a PlayStation 5 or an Xbox Series X. This coming generation might be the priciest of the lot if new reports on their components turn out to be accurate, as Bloomberg says that a steady stock of NAND flash memory and DRAM components for the PS5’s NVME SSD is in high demand due to smartphone manufacturers also making use of the technology.
The Japanese conglomerate is preparing to gradually replace the six-year-old PS4 console, releasing its PlayStation 5 the same holiday season its archrival debuts the upcoming Xbox Series X. Sony typically finalizes a console’s price in February of the release year, followed by mass production in 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.Bloomberg
What does that mean for you, the consumer? Supply and demand friend! With an extra cost being thrown into the mix, Sony finds itself at a difficult crossroad. Does it take the added cost on the chin and sell the PS5 at a loss while supplementing its income through other means, or will Sony pass that cost onto its consumers?
There’s a lot of factors at play here, as the current rumours suggest that it costs $450 to manufacture a PlayStation 5 in its current form. Throw in packaging, shipping and setting up the device for sale at retailers amidst what will most likely be an expensive advertising campaign, and that price rockets up, up and away. With the PlayStation 4, Sony only made around $19 profit on every $400 console sale during the launch heyday, before manufacturing resulted in a cheaper and slimmer device.
Sony also has to contend with Microsoft and the Xbox Series X, as its pricing will be instrumental in deciding just how much Sony will be willing to charge for the PS5. Locally, you’re probably going to have to get a mortgage to afford a PS5 or Xbox Series X. Even if you lowballed the price and saw a $450 RRP attached to either console, the final price in good ol’ Randelas will be higher.
A rough exchange rate calculation works out to just under R6700, but due to other factors and the fact that we all sit at the arse-crack of the world, it’s safer to say that the entry price for next-gen gaming will probably be closer to R11 000. That would make the PS5 and the Xbox Series X the most expensive consoles ever launched locally, putting the obscene benchmark of local launch prices from years past to rest. Or basically, if you’re looking for a launch day hop into the next generation, best you start saving now for it.
Last Updated: February 17, 2020