PS5: the components are expensive, the console is sold at a loss, Sony confirms it

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PS5: the components are expensive, the console is sold at a loss, Sony confirms it

In parallel with its latest financial results, where we could discover the sales figures of the PS5 (4.5 million), the number of subscribers to PlayStation Plus (47.4 million) and the number of copies of Spider-Man Miles Morales (4.1 million), Sony has also spoken about its goals for the year 2021. Although the Japanese company is having a hard time producing a sufficient number of PlayStation 5 to meet the high demand, it hopes to deliver 7.6 million consoles by the end of March. An ambitious figure, to say the least, given the manufacturing problems associated with AMD chips lacking an ABF substrate, an essential component for isolating the elements that make up the processors. While looking closer the Power Point shared by Sony, we especially realize the deadweight loss on the sale of each PS5. A scenario that many analysts had considered long before the release of the machine, given the components embedded in the PS5 and the need for Sony to maintain a competitive price.

If this practice is quite well known among manufacturers, it is on the other hand quite rare to have a confirmation, something that Sony has just done which confirms that with the increase in the price of components linked to the shortage and the health crisis, the money loss only increases over the months. According to some estimates, this shortage could continue throughout 2021, when Microsoft is more optimistic and expects new stocks just before the summer, next June.


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