How Much will the PS5 Cost?

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It is no secret that gaming is an expensive hobby. What makes it more so is the fact that every six years or so, a new lineup of consoles releases, bringing forth another wave of items for gamers to purchase. With the heralding of a new console, the internet immediately goes into a frenzy, speculating about prices. The PlayStation 4 has already let that particular cat out of the bag, and four hundred dollars is less than what people expected. So what about the PlayStation 5? What can we expect the PS5 Price to be? Should we start saving up now?

PS5 Price

There are certainly a number of factors to consider when asking a question like this. We should start by looking at current predictions and the actions of competitors like Microsoft. We’ll also need to look at the history of the PlayStation’s pricing, do some math, (yikes!) and see what inflation rates will have to say on the matter. Without knowing the exact hardware of the PlayStation 5, we can only speculate, and speculate we shall! Let us begin!

Gazing into the Crystal Moneyball: The Price of the PlayStation 5

Playstation 5 PriceOur current predictions put the PS5's price between $499 and $599. The price of the PlayStation five depends primarily on two major factors: The state of the economy, and the availability of hardware.

Our first major factor is the economy and rate of inflation between now and the system’s release in roughly two or three years. If the value of the dollar stays the same, or fluctuates only slightly, I would estimate a price range between five and six hundred dollars. This is taking into account the no doubt cutting edge technology that the system will include.

Let’s assume the value of the dollar goes up, and inflation decreases, then we could see another price like the jump from PS1 to PS2 in which case the system would most likely cost four hundred dollars, just like the PS4. This is less likely though, considering the current state of affairs in our economy and government.

It also depends on how low the price of the PS4 manages to go before the PS5 is released. After all, this would be a clear indicator of both our aforementioned factors. If Sony can sell the PS4 or the PS4 Pro at a lower price, then it stands to reason that the PS5 can afford to be sold at a lower cost than we would expect.

How low will the PS4 go before its successor is released? To answer that, we turn to our favorite analyst, Michael Pachter. His predictions are always interesting and worthy of discussion. His comments on the 1099 Podcast are no different.

During the podcast, he predicted that Sony would wait until the PS4 Pro was the standard system before they would bring out the PS5. Once this is the case, he predicts that Sony will lower the price of the PS4 Pro to $250 if they can afford it. Seeing as how the console sells for $399 at launch, this would be quite the price drop.

While it is low compared to the launch price, it could position the PS5 to sell for $499 as the newest console. By making it twice the price of the current system, it would be a pricing model that Sony's competitors have used before.

Take Microsoft for example. The Xbox One S sells for a standard price of $249 in 2017, while the Xbox One X sells for $499. This pricing model makes sense from a consumer standpoint as it clearly shows, from a pricing standpoint, which system is the older one and which one is the newer one.

It's interesting, because you would expect Sony not to lower the price of the PS4 Pro in this scenario, as they would be losing money, but in reality the lower price could stand to boost sales of the older system even after the PS5 releases.

By releasing a product that is double the price of the current system, Sony effectively makes the PS4 Pro look like a steal, while also introducing the new system at a competitive price point because it's $100 more than the PS4 Pro was when it first released.

This is a tactic called The Contract Effect. It may not be the sole reason for Sony's potential pricing, but it does play a factor, and it supports both Michael Pachter's theory about the PS4 Pro price and our theory about the PS5's ultimate release price.

PlayStation’s price tags

Before we can look at the potential price point for the PS5, we need to look at the pricing trends Sony has used in the past. These trends will help us better understand how Sony plans to price the new console:

Playstation Price History
PS1 $299 December 3, 1994
PS2 $299 March 4, 2000
PS3 $599 + (depending on model) November 11, 2006
PS4 $399 November 15, 2013
PS5 $399? Release Date

The price of the next console is the question we're here to answer today. It seems like Sony doesn't want to alienate gamers with a massive price tag again. If we look at the PS3 and PS4, it's clear that they learned from their mistake with the third console. That being said, the form that the PS5 takes will drastically change the ultimate price point. Let's look at the possibilities, shall we?

History tends to repeat itself:

When the original PlayStation launched in 1995, it was priced at three hundred dollars. Back then, I would have had to save my allowance for--well, let’s just say I’d probably still be saving. The PlayStation 2 released five years later for the same price. Then of course we have outlier: the PlayStation 3. When that one released, it was a whopping six hundred dollars!

PS5 Cost

At the time, this seemed like a lot of money for a game system, but what most people didn’t consider was that the PlayStation 3 was also a Blu-Ray player. Many stand alone Blu-Ray players of the time were close to a thousand dollars, so this was quite the deal in that regard.

Eventually, the price came down to compete with the Xbox 360, but the fact of the matter was that Sony was losing money, even with the six hundred dollar price point. The reason? The PlayStation 3 had new technology, something that was fresh, and costly. At the time, Blu-Ray was just beginning to hit the scene.

Now we look at the PlayStation 4 and we see a far different story. This new console is coming out at a four hundred dollar price point. Why the sudden drop? Well, as mentioned earlier, there are a number of factors that contributed to this price point.

One of which is the fact that the PlayStation 4, unlike the PlayStation 3, isn’t utilizing any kind of recently released or overly expensive technology. It is more powerful than the PlayStation 3, ten times more powerful according to Sony, but it uses established technologies that have achieved multiple methods and thus, less expensive methods of manufacturing. When something becomes readily available, it costs less to make.

The PlayStation 4 is the evolution of the PS3, but what about the PlayStation 5? This is where things can become expensive. You see, as mentioned in our other articles, the PlayStation 5 will be arriving in an era of massive technological change.

The next generation console will have a wealth of new and exciting technologies to take advantage of. This is good for the games, because everything will be infinitely more advanced, however this also means that the PlayStation 5 will be jammed packed with expensive hardware to create those experiences.

I am imagining a somewhat significant price jump when it comes time for the PlayStation 5. This is a result of the gargantuan increase in technology that we are anticipating over the next few years. It is difficult, nigh impossible to put a price point on it, so let’s discuss another major factor before we go down that road. Hold on to your butts, this is where the math comes in.

Oh, the Options You'll Have: 2 Versions of the PS5 (Plus VR)

Over the course of a console life cycle, it's not uncommon for the gaming machine to go through several versions. Usually you get a slim version with better cooling and a larger hard drive, but when the PS5 releases, Sony is going to look into providing two versions of the system to reach a wider audience. Our speculations also predict that PlayStation VR will combine with augmented reality to replace a handheld system like the Vita and be offered as an add-on for those who want to take their games on the go with a newer and better versions of Remote Play.

One version of the PS5 will provide all the bells and whistles. We're talking a massive solid state drive (SSD) that will be up to 128 terabytes in size! You'll also get backwards compatibility and a few other exciting features. Then there's going to be a "Core Experience" that will offer the basics that casual gamers will need to enjoy the PlayStation experience. If all of this is sounding amazing or crazy (or both) be sure to check out our full article on the 2 versions of the PS5.

A Lesson in Economics: How Inflation will Affect the PS5 Price

Playstation 5 CostFrom what I recall, I got a decent grade in economics in high school, once I was out of my general education in college, I left math on the side of the road and never looked back. For the sake of you, my dear readers, I will once more tread that narrow path suspended above a black abyss of confusion and uncertainty.

First thing’s first, a quick lesson on inflation for the benefit of myself and anyone else reading this who’s last brush with economics was in high school. So, the straight vanilla ice definition of inflation is as follows:

A general increase in prices and fall in the purchasing value of money.

Essentially what this means is that inflation occurs when prices go up as a result of high demand and low supply. Take the PlayStation 3 for example. Everybody wanted it, but no one had it in stock. This kind of situation creates inflation over time because manufacturers can charge higher prices for items that are equally high in demand, but low in supply.

Playstation 5 CostThe process of inflation also affects how much a single dollar is worth. Of course, a dollar is always a dollar, but the actual value of it changes based on inflation. For example, a dollar today is worth far less than a dollar two decades ago. A dollar from then would be worth over twenty dollars today!

A recent article from IGN discussed the cost of gaming in regards to inflation over the years. Colin Moriarty, the article’s author made an excellent point in regards to the price of game consoles:

“The PlayStation 3 may have seemed expensive when it launched at $599.99 in 2006 – and it was – but it’s not the most expensive mainstream gaming console. That honor goes to the Atari 2600. Launched in September of 1977, the Atari 2600 cost $199.99. When taking into account the 258.9 percent inflation rate between 1977 and 2013, the Atari 2600 cost the equivalent of $771 today.”

I don’t know about you, but that seems like a steep price point for a console whose lasting legacy includes the likes of Pong. As of right now, the rate of inflation is smaller, and more steady. Ten years from now though, the inflation could be different. Better or worse, it’s hard to say, but the fact of the matter is that the value of the dollar is low and the prospects aren’t looking too good for the future.

How much do you think the PS5 will cost? What would you be willing to pay for one? Tell us in the comments!

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Comments

you all just got hit on your head

yeah two things one you just priced the PS4 for sony with out them spending a penny one focus groups or marketing.(475) seemed to be average. video games do not influence world economy.....baaahhhhhaaa wars do the united states has been at war 20 years now uuuh Atari no Atari was high because it was the first to leave the gate also the first to see whats comin,oh cant remember who bought them sears maybe got half they did have a knock off half(hint) because of Atari and,keep in mind though a microwave was 300-600 and a Betamax was 1100 dollars years after Atari and todays biggest game bully ever!Funny how they never put out a console but they still callin the shots. Sony also tends to release controlled inventory like Nintendo a way of driving up stock prices before the short sell. counting on peoples need to out have each other. Second not sure about this but if you took a moment to look at the consoles and who is responsible for the "virtual" halt on cross platform play and put 1 and 1 together look closely I will wait here..............I read some of the comments its gonna take some of them a moment to catch up...............................................That's right its not a game console is it,atari died out because activision let them because they to this day don't care about you they carer about the money Atari was up against the cheap japanesse knock offs and the commodore 6400 was a colossal mistake,gennisis moved in on the game community sell at a price Atari couldn't compete at that's when the Japanese companies realized they had the market cornered until xbox came along and could give better graphichs at a better price Atari was around for some time after all Activision was and still is playing both sides controlling the game industry from the start knowing from the get go that the money is in the software not the hardware. Don't know their plans for this one but they got to keep it in disk format Sony has got to keep you ditracted from the fact that I can already Microsoft games on my laptop for over a year no, activision wont spend a dime on servers and sony has to transition from console to pc and that's already microsofts strong suit those Japanese computer break real cheap knockoffs leftover from the early 80's but yeah I'm sad to say it but I read the comments could be completely wrong but after 47 years of gamin naw say what you want, I have been watchin since it was pong ang pong wasn't Atari. Atari stole that and made it color instead of black and white. pitfall yeah that was it pitfall yars revenge / pacman ripoff for the kill????????

ps5

hey sony what about 350 $ dollar people whould buy it so much you know so just make the price 350 dollar

knowledge

Soo, I'm pretty sure that the ps5 will be a price point of $400 to $700. Why, well Sony(I'm sure) is putting in a Blu-Ray disc player, I'm also sure that it will have 4k visual, speed, and performance. Also playstation is going to add PlayStation Vue, lets you watch tv on your playstation, as well. And to let alone all of the 'unknown' perks that sony will be putting into the next gen consol. Next the controller, ooo ahhh, ya fun topic. Anyway I don't have a clue what this thing will look like... thanks for reading.

Ps5 price recommendation

PS5 should cost less than $450 dollars because by the time you finish buying the controllers and games you'll have spent around double the price.

I'm owner of a ps4

I think the ps5 is going to be around 600 because of all the things it might have and all the things that are hard to make and get that is my opinion what do you think live a reply if you think your with me

PlayStation 5 price

I'm not a gamer but my nephews are. They spend hours and hours in front of their game consoles! Their parents spend hundreds of dollars on them. Sony could give the PlayStation away and not charge a penny! Where they make a killing is on the price of the new games that's where the real money is made! And the sad thing is that the old games will not work in the new system that is really sad! It's almost a crime!

I'd be fine if it was over $1000

For those of u living in 2017, then u would know that just PHONES have gotten over $1000, so if this is gonna be the ultimate console, I think $2000 at most. Like they can have 2 versions, since there are 8k screens out, then maybe a beefed up version that can handle 8k 60fps, and 4k 120fps at $1200-$2000, but the less expensive version at $600-$1200, with 4k 60fps and no 8k. And a number of other stuff, like backwards compatibility (which should be in both versions), the amount of RAM and what type of RAM, etc, that would play into the price. Of course, what I'm saying is that if phones come out at $1000+, then $2000 would be my estimate for such a console, considering people spend $1000+ for something that all they do is use Facebook. Just my thoughts. (:

Ps5 cost

It should be like 350 375 because with taxes it would equal about 400 but the way I see it it should have went, ps1 $100,ps2$200 , PS3,$300 and up so with taxes it should equal around 500 no more than that. You do the math.

Pricing Ignorance

If People don't jump on the "NEW" Bandwagon & leave Sony fester on their wounds licking them trying to figure out why aren't people buying them, why Ubisoft, EA....etc., are worrying that Playstation PS5 isn't going to sell then, everyone, (The Consumer) will benefit from their $$. Don't buy right away. Although you get the whinnie whimps out there that don't know the price of $ & cry to Mommy & Daddy (Iwant, I want, I want) breathing out flames from their spoiled little tongues. When Parents should be putting the money for the rediculous prices that these gaming consoles cost into a college fund for their spoiled children. Relax parents, sometimes saying "NO!" to your lil ones doesn't hurt their future. People buy a $1,000 cell ph who shouldn'y buy them because they don't even have their ph bills caught up yet, but keep on believing that New is better. Stats will show that New isn't better. I worked in thecIT field & everyone wanted New at the College I worked at. New Items brings on New Problems... Heck, Sony hasn't fixed the Offline/Online issue yet on PS4... Let alone all the proplems people are still having in downtime because of being logged out constantly, not being able to log-on, game play issues & connection issues with other applications let alone Sony still hasn't added an extra cooler fan. Oh that's right, you have to buy it. So, beware Consumers, New means; the old problems not being fixed "cooling issues", "Connections & Logon issues"... I'm not a skeptic but a person that looks at the truth. All these continued problems with the Playstations & Also with with. Then they push a new release out & it still has connection issues & login issues with Us, the Consumer, having to purchase all the extra's. It's the kids that hurt from financial burdens, it's the parents or people who don't know the value of a $. Everyone will see when taxes go up & the value of our $ decreases. A loaf of bread & a gallon of milk will cost $50, a pk of Cigarettes $35-$50, or when the banks hang a sign on their windows & the ATM's have Out-of-Order sign...You'll know that you can't get internet bcuz the Government just took back contol of it.. That's right, communications have been taken away from the people as it will be monitored by our DOJ, DHS, CIA, DIA..etc. It is now but when Martial Law is put into effect & our economy collapses along with mayhem spilling out into the street because we'll be in a depression. The lil spoiled children won't get their gaming sets as they cry at their kitchen tables for Milk & Honey (if they'll even have that as many will end up homeless & squatting). Oh, sorry jumped too far ahead. Oh yea, Dad gets replaced by a Robot & doesn't have a job anymore that's coming soon too. A.I. Robots & any electrical communications will be A.I. (Artificial Intelligence) also. We'll see what Sophia has to say about that when she's Weaponized & militarized. Peace everyone...

400-600

I think it will be 400 -600

PS5 Price

Thank you SONY for listening to your people and making the PS5 Backwards compatible!!! I know so many others besides myself that have prayed for this!! So whatever the price may be that is what credit cards are for!!

PS5

I have owned every PS system, and now have the PRO, and I can easily tell they held back on the systems features. My estimate max for the PS5 is 500. My thing is I want to have the ultimate system, don't hold back on improvements just so you have room to add on your next project. We know its all about the profit and how to keep the profits coming. But take a chance and go all out, leave nothing on the table, and just find a way to push yourself beyond that on the next project. They do that then can pass my max and I will still get it.

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