PlayStation 5 Might Sell Below Cost, Undercutting The Xbox Series X To Take An Early Lead In Next Generation Console Wars

PlayStation 5 Might Sell Below Cost, Undercutting The Xbox Series X To Take An Early Lead In Next Generation Console Wars
Credit: Sony

Sony and Microsoft are gearing up for a war. With the upcoming release of the PlayStation 5 and Xbox Series X, both expected to come out later this year in time for the holiday season, we’ve got the dawn of an all-new console war on our hands.

Throughout previous generations, Sony and Microsoft have been trading off victories as they seek to one-up eachother with new and exciting features for their signature systems.

However, many insiders believe that Sony could make a very bold move that would give them a leg up in the console war from the starting line.

We’ve heard a bit about the internal hardware that will be powering both of these new consoles, and it seems to many as though they will share the same custom GPU and CPU. Both will also be featuring SSD storage to deliver an additional performance boost above the HDD systems we’ve come to expect.

Sony noted recently that it has still not decided the final price point for the PS5. However, they also hinted that the console could be sold below cost. That’s a strategy Sony used for the PlayStation 4, making it more affordable and undercutting Microsoft’s pricing right off the bat. One can’t argue with the results. The current generation of console struggles has been a huge win for Sony as they have dominated the gaming market over their chief rival.

If the PlayStation 5 sells under cost, it will undoubtedly take a strong lead that Microsoft could have a hard time catching up with.

It is believed that the Xbox Series X is going to be aiming for performance, trying to create a clearer picture than the PS5. However, in today’s climate, affordability could trump performance.

The rumored price being tossed around for the PlayStation 5 is $499, with many believing that the Xbox Series X could end up costing at least $100 more than that.

When the PlayStation 4 launched against the Xbox One, it was also $100 cheaper than its rival. That’s mostly because Microsoft was all-in on the Kinect functionality of the Xbox One and coupled the console and the Kinect together. They PlayStation 4 went on to become the second highest selling video game console of all time (trailing only behind the PlayStation 2). Microsoft tried to catch up by releasing cheaper versions of its signature console, but it was never enough to close the gap.

As of today, the PlayStation 4 has sold nearly 110 million units while the Xbox One sales have trailed significantly at only 50 million.