A new video game generation begins later this year with the release of the PlayStation 5 and Xbox Series X. Details of both consoles are slowly filtering out but how much will they cost?
Microsoft revealed the Xbox Series X at The Game Awards 2020 and has been drip-feeding information ever since. Sony has been more tight-lipped about its new games system, the PlayStation 5. We have a general understanding of the console’s technical capabilities. We’ve glimpsed the potential new DualShock controller. We’ve even seen the rather funky devkit, but that’s about it. The only official information has come via exclusive reports from Wired, a logo reveal, and the tantalising empty official PlayStation 5 website.
All of this means that it’s hard to determine exactly how much the PlayStation 5 will cost at launch. We’ll keep this page up to date with the latest official information, but here’s what we know so far, and what we can infer.
In a statement from Sony’s Q3 FY2019 Consolidated Financial Results briefing, chief financial officer Hiroki Totoki has given the clearest indication yet to Sony’s approach in pricing the PlayStation 5. Speaking via translation, he said:
“What is not very clear or visible is because we are competing in the space,” Totoki says, “so it’s very difficult to discuss anything about the price at this point of time and depending upon the price level, we may have to determine the promotion that we are going to deploy and how much costs we are prepared to pay. So it’s a question of balance, and because it’s a balancing act it’s very difficult to say anything concrete at this point of time, but when I said smooth transition, we mean that we will definitely choose the optimal approach and that we will try to have the best balance so that we will be profitable in the life, during the life of this product.”
So let’s unpack this statement a little. Totoki-san’s opening line refers to the competitive space the PlayStation 5 will be part of, and by that, he means the next Xbox. It’s a clear statement that Sony is watching how Microsoft will position and price the next Xbox (or Xboxes) Indeed, it could be that Sony is waiting for Microsoft to make the first move and set the ballpark price range. (Just like Microsoft did with the Xbox One X, a mid-generation refresh that, with the benefit of going second, is more powerful than Sony’s PS4 Pro.)
Sony is surely keen to repeat the mistakes of the past and avoid a price variance similar to that between the Xbox 360 and PlayStation 3. The Xbox 360 launched with two models, priced at $299 and $399, in 2005. A year later, the launch PS3 models were priced at an eye-watering $499 and $599. Shuhei Yoshida – previously Sony Worldwide Studios President – admits this price disparity was a huge mistake, calling it horrifying. It certainly contributed to the PS3’s sluggish launch in the West.
Sony had greater success with the PlayStation 4, mostly by having a clearer consumer proposition, but also by undercutting the price of Microsoft’s Xbox One – which bundled a Kinect sensor nobody really wanted – by $100.
When Totoki speaks about a “smooth transition” he’s likely referring to making customers comfortable, by aligning with the PS5’s price to existing hardware – namely the PlayStation 4 Pro, which launched at $399 in the US. This certainly fits in line with PlayStation CEO Jim Ryan’s comments about the desire to transfer customers from the PS4 to the PS5 “at a scale and pace that we’ve never delivered on before.”
PlayStation 5 system architect Mark Cerny is on the same page. Following the console’s 2019 announcement in Wired, reporter Peter Rubin confirmed via Twitter that Cerny said: “I believe that we will be able to release it at an SRP that will be appealing to gamers in light of its advanced feature set.”
Totoki also speaks about the PS5’s profitability, which is an indication that the console’s price will – initially, at least – start at the higher end. After all, Sony can always reduce the price to stimulate sales, but can’t go in the other direction.
So based on what we know so far, we predict the PS5 will cost more than the PS4 Pro and will be released at $499 in the US and £449 in the UK.
For one thing, this is bang in the middle of Sony’s historic pricing strategy for PlayStation consoles, when adjusted for inflation. The original PlayStation, costing $299 in 1995, would cost $500 in today’s money. The PS2, also priced at $299 in 2000, would be a bargain $445 in today’s money. The PS3 is the outlier – its $499 price tag in 2006 translates to $630 in today’s money – with the PS4’s 2013 price of $399 translating to around $435 in 2020.
The PlayStation 5 coming in around $500 makes sense, both in terms of its position in the market above the mid-generation, transitional PS4 Pro, and with respect to Sony’s pricing history for PlayStation consoles.
PlayStation 5 at a glance
- Release date: Holiday 2020
- Estimated Price: $499 / £449
- Specifications: 8-core AMD Zen CPU, AMD Navi GPU, custom SSD, 4K Blu-ray player
- Features: Improved loading times, ray tracing, 4K performance at 120Hz, haptic DualShock controller