Sony's PlayStation 5 console has been popular with gamers since its release last year, but its price has also remained high due to the tight and high cost. Recently, Sony Interactive Entertainment (SIE) President Hiroki Shishi revealed at the ** conference that there is very little room for price reduction of PS5 game consoles in 2024, mainly because the chip size is difficult to shrink, resulting in manufacturing costs that are difficult to reduce.
It is reported that the core chip of the PS5 game console is an 8-core 16-thread processor customized by AMD based on the Zen 2 architecture, and 10 based on the RDNA 2 architecture28tflops graphics processor, both chips are manufactured using the 7nm process, and the size is relatively large, taking up most of the space in the entire motherboard. At the same time, the PS5 console also comes with 16GB of GDDR6 RAM, as well as 825GB of custom SSD storage, which is not cheap.
Compared with the previous generation PS4, it is more difficult to reduce the chip size of PS5, because the 7nm process is close to the physical limit, and there are issues of heat dissipation and power consumption that need to be considered. "To put it simply, it's very difficult to reduce costs," he said. This means that if Sony wants to reduce the production cost of the PS5 by reducing the chip size, it may need to wait until more advanced process technology becomes available, or make larger design changes, which will take time and investment.
In addition to the cost of chips, Shishi Yuki also mentioned another factor that affects the price reduction of PS5, that is, "user engagement" and "single device sales". He said the company needs to strike a good balance between ensuring that the business is profitable while also focusing on improving the gaming experience and satisfaction of users. In other words, if the PS5 price reduction leads to a decrease in the quality and quantity of games, or affects user loyalty and word-of-mouth, then Sony may not be willing to do so.
In fact, Sony is not too optimistic about the game lineup in 2024, and Hiroki Totoku announced that in the next fiscal year from March 2024 to March 2025, Sony will not release any new existing major first-party IP works, that is, first-party blockbusters like "God of War" and "Marvel's Spider-Man" will not appear within this year. This also means that PS5 console sales may be affected to a certain extent, and the lack of strong game support will also reduce users' desire to buy PS5.
To sum up, the reason why Sony's PS5 game console will not significantly reduce prices in 2024 is mainly due to the high cost of chips and the lack of a strong game lineup. This may not be good news for those who are expecting a PS5 price cut, but it can be a comfort for those who have already bought the PS5 as they don't have to worry about their gaming opportunities depreciating too much. Of course, this does not mean that Sony will not cut prices at all, but the magnitude and timing of price reductions may not meet players' expectations. Perhaps, when PS5 is stable, the process is progressing, and the games are rich, Sony will consider giving PS5 a reasonable price reduction.