A report by Bloomberg indicates that costly components for Sony's upcoming console have driven the manufacturing costs up to around USD $450 per unit.
Unnamed sources also note that the company is yet to confirm retail pricing, perhaps waiting to see what Microsoft announces for the Xbox Series X.
A high production cost should be of no surprise, given the PlayStation 5 will boast a solid state drive for storage and hardware accelerated ray-tracing.
However the spike in production costs has come from a scarcity of DRAM and NAND flash memory which aren't just in demand by Sony or Microsoft, but also companies like Samsung which is in the process of launching a new generation of smartphones.
Many experts believe the PlayStation 4's initial manufacturing costs were around USD$ 381, which resulted in a launch price of USD $399.
Conversely, Sony won't want a repeat of the PS3 launch, which saw the console release in New Zealand at an eye-watering $1200 price point.
Whether the company chooses to sell the console at a loss to begin with is yet to be seen, but for now – it might pay to squirrel away a few extra bucks.