The launch of the next-generation of consoles, the Playstation 5 and Xbox Series X, is just a few months away, with the expected launch to happen in early to mid November 2020, before the Black Friday sales begin on November 27th. Despite only being a few months away, neither Sony or Microsoft have revealed the prices of the systems, right now both companies are at a stalemate waiting for the other to reveal their price first. It is believed that Microsoft will try to undercut Sony to get a competitive edge.
The stalemate is due to both consoles releasing at a very similar time, but this isn’t as uncommon as you might think. Both the Xbox One and Playstation 4 launched a week apart, with the PS4 launching on November 15th 2013, followed by the Xbox One on November 22nd 2013. There have also been other instances of this over the years. The PS3 and Wii launched in November 2006, the Gamecube and Xbox launched 1 day apart in November 2001, the Sega Saturn and Playstation launched 11 days apart, and the NES and Sega SG-1000 both launched on July 15th 1983.
In 2013, when the Playstation 4 was first released, the console retailed for $399 US. In 2020 with inflation that would put the predicted price of the Playstation 5 at roughly $455.50. This falls in line with expectation that the Playstation 5 will retail in the region of $400-500. It is also rumoured that the All-Digital Playstation 5 will retail around $350. The Xbox Series X, if priced to undercut Sony, is expected to retail for around $400. Currently, it has been reported that the Playstation 5 costs $450 to produce. If Sony were willing to take a $50 loss per console, they could release at $399 like the PS4 and directly compete on price with Microsoft, relying on their strong sales during the current generation to edge out on early console sales over the holiday period. The Playstation 4 has sold over 110 million units, while the Xbox One has sold an estimated 50 million, giving Sony a huge market share and greater ability to retain gamers into the next-generation.
With both companies wanting to price their consoles competitively, it is likely both consoles will sell at a loss. This is actually quite common, especially in the early years of a console’s life cycle while parts are still expensive. Instead, the companies make their profits in accessories, software and subscriptions. The PS4 cost $381 to make and retailed at $399, with the CPU and ram alone totalling almost half of the consoles production cost.
The Playstation 5 is rumored to launch on November 20th, there are reports Sony is releasing the Dual Sense controller on that date so it makes sense for the console to launch alongside it, what use is a controller without a console to play on. There is also reports that the PS5 will launch first in Japan on November 14th, however this is unconfirmed. With gamers not wanting to wait nearly a week to finally play, it could be a good opportunity for Microsoft to release the Xbox Series X on the 13th or 14th, enticing gamers who see footage of the next-generation in action and can’t wait another 6 days to get their hands on it.
As of right now there is no official confirmation on price or release dates, but both companies are expected to host online events in August, so that would be a perfect opportunity to finally reveal those details.
What do you think the price of the Playstation 5 will be? Let us know in the comments.