Sony would be hard pressed to keep the price of the PlayStation 5 low. What does this mean for the Xbox Series X?

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Bloomberg Technology claims Sony is having manufacturing issues with the next PlayStation 5. The report cites "spooky components" as a problem, which is driving up costs significantly for the next-generation game console.

The problem is familiar. Sony would be hard pressed to get reasonable prices on a reliable supply of DRAM and NAND flash memory. It is so bad that Sony would also have canceled some new features for a mirrorless camera due to the DRAM supply problem (only three companies make 98% of the global supply).

The reason is simple: smartphones. The latest from Samsung's Galaxy S20 Series is huge, and its specs have only increased in recent years, reducing the same supply as game consoles. Apple also cannot be discounted from this, as this company is known for locking components early and quickly because of its size, influence and market position.

Bloomberg Technology adds that some other costs for the PlayStation 5 are already locked, including a more expensive cooling system than usual.

With the PlayStation 5 that would cost $ 450 per unit, the report suggests a price of $ 470 for the console in order to maintain a gross margin similar to the PlayStation 4. This old unit would only cost $ 381 to be manufactured and sold for $ 399 , making the latest Sony much more expensive. Kotaku sees this price as even more dire for the Australian market after taking into account shipping and distribution costs.

Surprisingly, there is no mention of Microsoft and its Xbox Series X console in this report. Microsoft's console also uses many high-end components, and its price should not be as low as the One X or One S, which remain options for consumers. Indeed, a report says that the X-Series SSD may in fact be DRAM-free - a first in this market - which could help Microsoft get around this supply problem, at least partially. The solution for Microsoft, which is unconfirmed, is the dependence on Phison's new PS5019-E19T flash memory controller.At XO19 last year, Xbox chief Phil Spencer remarked, "I would say that learning from the Xbox One generation is that we will not be out of position on power or price," suggesting that the company has given a lot of thought. on this subject. Confirming this, recent reports suggest that Microsoft has added support for next-generation CFExpress SSD cards for easy, fast (and expensive) storage expansion.

However, as electronics, smartphones, laptops, game consoles, and even smart cars begin to suck up more silicon, it's unclear what impact this will have on X-series prices. Many companies Technology - including Microsoft - also take into account the COVID-19 coronavirus epidemic in quarterly recommendations for investors (NVIDIA did the same on February 13).

How Sony solves its supply problems could be a big problem, especially if the company has to sell "at cost", which reduces revenue. Microsoft doesn't seem to worry, however, so far we haven't heard anything serious. It will be fascinating to see how the price oscillates between the two behemoths of the game.

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