The PS5 Is Being Sold At A Loss, According To Sony

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Sony has revealed that the PS5 is currently being sold at a loss as part of a recent earnings announcement [via GamesRadar].

An image of both versions of the PlayStation 5, with two DualSense controllers
Credit: Sony

The company’s fiscal year 2020 earnings announcement covers various financial aspects relating to the PS5. While the console has bought in a lot of revenue for Sony since its launch, the new hardware is apparently being sold below the price of manufacturing.

According to the announcement, sales are being made at a “loss resulting from strategic price points for PS5 hardware that were set lower than the manufacturing costs“.

PlayStation 5 and all of its accessories including the remote, headset, charging dock and camera
Credit: Sony

Recently, we also learned that the PS5 sold more units than the PS4 during its first fiscal year. Despite ongoing supply issues caused by component shortages and the current pandemic, console sales accounted for 4.88 billion of the companies revenue for 20/21.

Sadly, Sony’s CFO went on to state that the console’s supply issue isn’t likely to improve anytime soon:

“As I said earlier, we’re aiming for more sales volume than the PS4 [during year 2]. But can we drastically increase the supply? No, that’s not likely.

ps5 image
Credit: Sony

The shortage of semiconductors is one factor, but there are other factors that will impact on the production volume. So, at present, we’d like to aim at [beating] second year sales of 14.8 million, which was the second year of PS4.”

A close up of the PlayStation logo on the PS5
Credit: GameByte

Hopefully, the PS5 stock situation will resolve itself sooner than later. Otherwise, Sony’s new console might struggle to keep up with the PS4 lifetime legacy, which boasts over 100 million units sold.

Sony’s hopes at surpassing the PS4’s second fiscal year figure of 14.8 million units are perhaps a tad ambitious. Yet, it could also be a sign that PS5 stock levels are about to increase tenfold. 

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