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Sony Corp. plans to produce far fewer units of its upcoming PlayStation 5 in its first year than it had for the previous-generation console’s launch, according to people familiar with the matter. The Tokyo-based tech giant is limiting its initial production run in part because it expects the PS5’s ambitious specs to weigh on demand by leading to a high price at launch, the people said, asking not to be identified because the subject is private. The global Covid-19 pandemic has affected Sony’s promotional plans for the new device but not its production capacity, they added.
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The PS5’s loftier price tag may also deter initial take-up. Game developers who’ve been creating titles for the next PlayStation anticipate its price to be in the region of $499 to $549, and Bloomberg Intelligence’s Matthew Kanterman points to increased component costs pushing up the price required for Sony to break even. Sony has struggled with its price-setting decision for the PS5 because of scarce components, Bloomberg News has reported.