Red Flag Rumor: PS5 Price Point Leaks At $559 CAD

A recent potential leak has surfaced breaking the silence and potentially answering the question of how much will the next generation Playstation cost. In an exchange between Play N Trade Vancouver and customers, the retail outlet revealed they are taking $559 presumably in Canadian for Preorders, as reported by TomsGuide.com. Shockingly this is rather cheap as it puts the US cost around $400 and the EU at around £350.

To the credit of Tom’s Guide, they do not state this leak is the definitive price point. Rather they offer the speculation that Play N Trade doesn’t know the actual price. With $559.99 being a down payment price with a secondary charge coming later to clear your balance for the console. Likely based around the asking price of the current generation at launch.

Alternatively, Sony could be opting to sell their console at a loss. Allowing them to retain a competitive edge with Microsoft during the next generation. An edge the company will need after having vindictively drove the Japanese Market towards the PC alongside Nintendo. Microsoft seems to have realized this market would garner a good deal of customers and has been in discussions with Japanese developers while looking for acquisition targets.

Microsoft will likely run into two issues: Firstly like Sony, they have not treated Japanese developers all that well. By 2017 their system was still geared towards bulk distribution that often discriminates against the Japanese often niche market. Said issue was made all the worse by the limited appeal the Xbox platform has had outside the US.

Their second issue is any acquisition or demand for change that threatens what makes the niche market viable would either be a loss for Microsoft or untenable for the niche developers. More general audience alternatives would subsequently cost more money to acquire. Rendering these alternatives probably out of Microsoft’s interest as they have chiefly focused on acquiring struggling and nearing defunct status studios to reform. Sadly the lackluster designs and wokeness that lead many of those studios to that position doesn’t appear to be abating anytime soon.

Ultimately there is no way to discount that particular theory without an official word or a credible source. Previously Bloomberg reported as a result of part scarcity each console will cost Sony around $450 to manufacture. Rendering each unit sold at the $400 mark costing Sony the difference, the shipping, and the stores cut per unit. A steep loss that could cost a hundred plus dollars per sale for the company. Leaving the option very unlikely to occur.

If it does, Sony would find Microsoft in a position to easily match their offering. Better processing power would tip the favor in towards Microsoft in a head to head comparison. Whereas their control of their own manufacturing puts them in a position to take a smaller hit per unit sold compared to Sony. Though no exact figures are available at this time for either platform.

Making matters worse for Sony is the fact Microsoft is better poised to recoup any loss than they are. Services are where both manufacturers will make up any losses. Sony currently has its online service, a Netflix competitor, and Playstation Now. Whereas Microsoft has Xbox Live, Game Pass, and an upcoming streaming service many are heralding as superior to Now and Stadia. At $15 a month to bundle live and game pass, and a whole year running $180 or $119.99 with $59.99 yearly Xbox Live Membership they stand to more easily recoup any losses.

If Microsoft were to offer a $150 yearly bundle that would go a long way in allowing them to absorb any losses with ease even if adoption rates favor Xbox Live with trying game pass. Ultimately until either manufacturer makes their official pricing known, along with any bundle, adoption deals, ect we do not know for sure what is happening. Thus as always take this with a grain of salt, even more so than usual.

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