PlayStation 5 Price Predicted To Be $399 Based on Hardware Components

According to an industry analyst, PlayStation 5 price point is going to be $399, same as PS4’s launch price. This price bracket is unusual to hear as most of the pundits are predicting PS5 price point to be at least $499.

Pelham Smithers, MD of the Pelham Smithers Associates market research firm believes that PlayStation 5 will be a lot cheaper. According to Smithers, PS5 will use AMD Ryzen 3600G CPU because of the system details discussed by Sony’s Mark Cerny. PS5 will need to come with a 7nm 8-core Ryzen CPU to support ray-tracing, 8k graphics and should be compatible with the AMD Navi 20 GPU, suggesting that Sony is likely to feature AMD Ryzen 3600G which was unveiled at Consumer Electronics Show 2019.

Based on Smithers’ estimation, Ryzen 3600G CPU is going to cost around $180 to $220 at the end of 2019, which will allow Sony to sell PS5 for just $399 (similar to the price of PS4 at launch). Obviously, $399 price tag makes PS5 more affordable and accessible to majority of the consumers.

The predicted figure also aligns perfectly with the previous statement of Mark Cerny that PS5’s price will be “appealing to gamers” for what it’s going to offer. However, nothing has been officially confirmed by Sony yet so Smithers’ words are nothing but speculation at this time.

Keep in mind that not everyone agrees with Smithers’ prediction. Looking at the current market and prices of available consoles, a next-gen console with a price point of $400 seems very unlikely. The least we can expect Sony to do is between $400-$500. $400 can be only achieved if Sony is ready to let go of up-front costs.

If PS5 is going to be released in 2020, the hardware package Smithers is predicting could become commercially viable next year.

As for the other features in the console, Smithers believes that Sony will be using its own games to showcase the power of raytracing and 8K in PlayStation 5.

PS5’s reveal or official announcement is expected to be at upcoming PlayStation Experience or at E3 2019. There are many rumors of PlayStation 5 launching in March 2020 so a reveal later this year will make sense.