Earlier this week, Sony finally confirmed that the PlayStation 5 will indeed be called the PS5. The company also confirmed some of the PS5's features, its holiday 2020 release window, and even offered some details about what to expect from its new controller. However, Sony kept one important detail about the PS5 secret, but it may be the thing that many consumers have the most interest in when it comes to the new console - how much it will cost.
As of the time of this writing, no official PS5 price point has been nailed down by Sony. And since the console is still over a year away from release, chances are good that Sony itself doesn't really have any idea how much its next-generation console will cost. Even so, we can make some educated guesses on how what the PS5 price point will be, based on the cost of current-generation hardware, analyst predictions, and the technology that the PS5 is bringing to the table.
Here is the likely PS5 price range, and all the things that may impact it.
Well before Sony even announced the PS5, various industry analysts weighed in with their opinions on how much the next-generation console will cost. While estimates vary, it seems that most industry analysts agree that the PS5 will be priced at $499. It seems analysts have come to this conclusion based on a couple of different things - the technology powering the PS5, and Sony's console pricing history. With the exception of the PS3, Sony has historically tried to keep its consoles relatively cheap and affordable at launch, and that's something that it will most likely attempt to do with the PS5 price as well.
Current Generation Hardware
Something to take into account when it comes to determining the PS5 price is how much current-generation hardware costs. Right now, a PS4 Pro's suggested retail price is $399. The Xbox One X, the most expensive console on the market, is currently priced at $499. It's highly likely that the new consoles will drive the price of current-generation hardware down. Sony will likely price the PS5 within $200 of the PS4 Pro's price, though we expect the cost of the PS4 Pro to be slashed significantly by this time next year, maybe by even as much as $100. It would look odd for Sony to have the PS5 cost about the same as a PS4 Pro, and it may send consumers the message that the PS5 isn't a significant upgrade, which is something the company would want to avoid.
Then again, the price of current-generation hardware may not go down, which could mean that the PS5 price will be higher than many expect. If the PS4 Pro stays firm at its $399 price, then it wouldn't be all that crazy, based on past console prices, for the PS5 to be priced as high $699. Sony had a tough time selling the PS3 at a high price, though, and so if it wants to maintain its momentum from the PS4, it will need to price its hardware at a competitive rate.
One outside factor that could have a huge impact on the PS5's price point is Trump's proposed tariffs on China. The proposed technology tariffs haven't taken effect at the time of this writing, but if they do, then all three console manufacturers will likely be looking at raising their prices. Nintendo, Sony, and Microsoft have sent a joint letter to the US government asking it not to impose the technology tariffs, but if the tariffs are put into place, the PS5 price could be driven up.
Most Likely PS5 Price Point
Based on these factors, it seems that the most likely PS5 price range is $499-$599. After the struggle Sony had selling the PS3 at $599, it would be surprising to see the PS5 priced that high, but it could be justified due to inflation and the cost of current-generation hardware. Most analysts seem to think $499 is the sweet spot for the PS5, and if we were to put money on it, that price would be what we'd bet on. However, factors like Trump's tariffs could have a negative effect on the PS5 and force Sony to raise the console's launch price. Even so, we can't imagine it being priced much higher than $499, and if it were to exceed $599, that would be completely unexpected.