PS5 Is Being Sold At A Loss, Sony Confirms–And That’s Not Unusual Or Cause For Alarm

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As part of Sony’s latest earnings report, the company announced that it is losing money on every PlayStation 5 that it sells–but this is not unusual for Sony or the wider gaming industry.

In its statement, Sony said it is incurring a loss of every PS5 due to its decision to set a “strategic” price point for the next-generation system. The consumer price of the disc version of the console, $500 USD in the US, is less than what it costs to manufacture it, thus leading to an overall loss.

Sony did not provide a specific dollar amount for how much money it’s losing on every PS5, but the company said its results during the October-December period were also negatively impacted due to higher general and administrative costs associated with launching the PS5.

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GameSpot is a video gaming website that provides news, reviews, previews, downloads, and other information on video games. The site was launched on May 1, 1996, created by Pete Deemer, Vince Broady and Jon Epstein. It was purchased by ZDNet, a brand which was later purchased by CNET Networks.