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The price of Sony's forthcoming PlayStation 5 is being driven up by the cost of scarce components. According to a Bloomberg report, the manufacturing costs for Sony's next-generation console has increased to around $450 per unit.

For context, the PS4 cost around $381 to manufacture and retailed for $399 when it released in 2013. With a similar cost margin, this could mean that the PS5 might retail for at least $470. Now it looks as though the Japanese company faces a difficult price-setting decision, particularly because its PS4 Pro often sells at a loss, as low as $299.

Sony normally settles on the console’s price in February of the release year, then goes into mass production in the spring. According to Bloomberg's source, “the company is taking a wait-and-see approach” this time around.

Macquarie Capital analyst Damian Thong explained that “consumers will benchmark their expectations based on the PS4 Pro and PS4 ... If Sony prices above that, it would likely be to balance a need to offset higher materials cost, against risk to demand.”

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