PS4 Manufacturing Costs Are Down, Leaving Room for an Aggressive Price Cut

July 31, 2014

Sony has revealed in its Q1 2014 report that manufacturing costs of the PS4 have reduced since its introduction to the market in November of last year. The difference in margin has been enough to increase its projection for the fiscal year from 20 to 25 billion yen.

Sony has previously stated that the PS4 is profitable at a price of $399.99. With a further increase in profitability, Sony is in a position where it can make a move if it wants or needs to.

Related: The PS4 is Already Profitable at $399

Microsoft recently dropped the price of its Xbox One, but only after removing a vital component of the package: Kinect 2.0. The PS4 wouldn’t need to compromise its offerings to reduce its MSRP.

A price drop is unlikely to come in the next couple months, mostly because it doesn’t necessarily need it. It surpassed seven million units sold worldwide as early as April, setting it on pace to do as well as the PlayStation 2’s first year with 10 to 11 million units sold.

A $449 Destiny PS4 Bundle will arrive on September 9th, which includes a limited edition Glacier White PS4 and DualShock 4, Destiny, and one month of PS Plus.

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Although Jonathan Leack began covering the gaming industry in 2009, his earliest roots date back to 2004 when he wrote his first of many reviews to come. Equipped with a B.S. in Computer Information Systems and several information technology certifications, he provides a unique perspective that is technological and business conscious. Having acquired the role of Executive Editor in 2016, his mission is to make GameRevolution a gaming site that thoughtfully considers the consumer perspective, and has a knowledgeable presence of PC gaming, console, hardware, and eSports coverage.