When it comes to its latest gaming hardware, Sony is losing money. Despite selling 4.5 million units last year, the company has not turned a profit from the PlayStation 5 console.

Per Sony’s investors report, the PlayStation 5‘s retail price at $500 isn’t enough to cover the cost to manufacture it. The company mentions the loss is intentional as it set the price at a strategic point to compete with the Xbox Series X.

But though the company keeps losing money in hardware, its games and network services more than make up for it. Sony has reported a 26.7-billion-yen year-on-year increase in operating income for the third quarter of the fiscal year 2020.


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In terms of stock, the PlayStation 5 continues to be hard to find for consumers, with restocks often sold out quickly due to bots and scalpers.

The PlayStation 5 isn’t the first console to be sold at a loss, as almost all game consoles, specifically their launch version, had been sold lower than their costs. Such is also the case with the current Xbox Series S and X, as well as consoles from previous generations.

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