Sony Interactive Entertainment chief financial officer, Hiroki Totoki indicated that they are yet to determine the price of PlayStation 5. The company is considering several factors that will influence the decision.
Sony had an earnings call for its third quarter on Tuesday. At the earnings call, Hiroki Totoki was asked how they wish to transition to the next generation consoles, smoothly.
The questioner asked the chief financial officer about the decision-making process of determining the PlayStation 5 price. He also questioned Hiroki Totoki if things such as development cost and marketing were a factor and whether there were other hidden components that came into play.
First, we must absolutely control the labour cost, the personnel cost, it must be controlled
He went on to say:
What is not very clear or visible is because we are competing in the space, 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
Totoki added later on that determining the price of such a big product is a “question of balance”. Sony’s CFO said that they will choose the “optimal approach” when it comes to such matters. He claimed that the Sony needs the product to be profitable. Sony also needs to consider the price of its competitor, Microsoft’s Xbox Series X.
It is clear from Totoki’s response that the PlayStation 5 price depends upon several factors. There is a huge cost to mass-produce the product. As of right now, there are too many variables for them to reach a settlement. Balancing the costs of production and promotion of a product can be a tricky task.
Sony has yet to reveal a specific release date for the PlayStation 5 though analysts predict the release to be at the end of the year.