I believe Sony will sell the PS5 with loss, at minimum a 100 bucks loss. It will take at least 2 years after PS5 launch for it to have a production cost lower than the sell price.
That was the standard.
PS4 was the first time they were able to break even at launch with only a game plus PS+ subs. And in like 1 year were already breaking even on the HW alone.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"