The PS5 is being sold at a loss, with Sony bolstering its revenue through subscription services and digital sales. This was confirmed in the recent Sony Q3 FY2020 earnings report, which covered the quarter from October to December 2020. Sony says that the current $499 and $399 price points for the disc and digital versions of the PS5 respectively are lower than the manufacturing costs for both, which means Sony is operating next-gen hardware sales at a loss in order to achieve a more ?strategic? and palatable price point.
Sony stopped short of confirming exactly how much it costs to manufacturer each PS5 and what the overall losses are for each physical and/or digital edition sold. The earnings report goes on to detail additional ?general and administrative costs? incurred during the launch of the PS5, with some likely being owed to the pandemic.
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