First of all let me apologise as I won't be replying much on the thread as I read more and comment less as you can see from my post history. However, reading across forums this topic has been going back and forward and many people believe the Ps5 will cost more to develop.

I'm not an industry insider but I think I have a good general understanding of how business works and what costs more and what costs less and some of the arguments don't make sense to me. 

This is not about hate or picking sides about which is better. This is strictly about getting a better understanding of why one consoles may cost more than the other to develop so we can all hopefully learn a bit more from those who are more tech savvy. 

From my basic understanding of consoles, I believe the 5 most expensive components that make up the price are:

1) amd processors

2) RAM

3) cooling solution 

4) SSD

5) controller

AMD processor cost

mfrom what I've read so far, the x1sx has 30% more CU that will probably increase the cost of the X1sx whilst the argument for the ps5 is the higher clock rates will increase yield deficiency and Sony will have to eat up the cost. However, everything we've heard so far poibts to yields being great for the ps5. The difference in cost surely is massively in favour for the ps5 as having 30% more CUs won't come at a $5-10 difference will it?! Also, correct me if I'm wrong but more CUs also could mean higher yield deficiencies and we've heard nothing from the xbox camp to say otherwise. 

Result: cheaper for ps5

RAM: same ram, but faster on the x1sx. 

Result: same for both or near enough the same

Cooling solution: x1x won't go with a cheap solution. Possibly use the same colling solution as the X1X. Ps5 won't use mercury cooling, but cheaper alternative with a casing they have designed. 

Result: cheaper on x1sx, but will it really be $40-50 more expensive?! 

SSD: my understanding is they both use the same SSD, but how it connects is different. Ps5 has more lanes and esram I think. The tech used isn't new and expensive, its been out together by existing tech. The Esram is probably the cost differentiator, but then the xb1sx is paying for an additional 175GB of SSD. 

Result: in my head at least anyway, the x1sx as the cost of the additional 175gb will out weigh the cost of the esram and other bits. 

Controller: people assume there is a lot of new tech in the dual sense, but in reality it's just a DS4 with a cheap ass mic that they usually throw in for free in the earphones and they have replaces the rumble with haptic feedback. Everything else is from the DS4, and the haptic feedback alone is less new tech than going from DS3 to DS4, which had the light bar, touch controller, new rumble, speaker and headphone jack. 

Results: same as they are both using mostly same tech

Outside of these differences I think there are 2 more factors to take into consideration:

Manufacturing: we know Sony not so long ago finished building their own state of the art manufacting factory. If sony is building a lot of these themselves they will save massively on manufacturing. Some how I find it hard to believe they would build this facility for the ps4 knowing the ps5 is coming out. 

Result: cheaper for sony

Bulk buying: the ps5 will be ordering the same of everything with the exception of the disc drive. 10 million orders for the same ram, sad, processor etc. MS on the other hand are ordering in smaller figures for two separate machines and at least 3 different types of Ram. They won't have the bulk buying power that Sony do. 

Result: cheaper for sony

Overall: everything points to a cheaper cost to Sony. 

Again people, this is not about console waring, this is about understanding where the costs might be for either machine and why. 

Thanks :) 

I suck at pricing CTB for consoles. But this is a great idea for a thread, and I can't wait to read the responses.

It doesn't, most of the expense was the chip, memory and what not. Xbox has more of everything, it cost more than the PS5, that is a fact. The high expense comes from people's theory that their super ultra duper SSD was expensive to make.

Well, the IO is equivalent of 9 zen 2 cpu ( built in fixed fonctions silicon chips). That could increase the price.

We will see, unless we have a price list of parts, everything is just speculation.

$450 apparently, Dram and nand flash driving up cost.

Any idea what the cost of dram and nand are? 

PS5 is skinny, which means it's parts have to be skinny to fit into it, and we all know smaller technology is more expensive than the same specs on larger technology. Series X is huge, with tons of space on the inside, so the parts don't have to be as small.

I have no idea who is making or losing what money on their device. A lot of that is impacted by higher ups negotiating prices with manufacturers behind the scenes. Hypothetically one of them could have, on average, gotten better "deals" on parts than the other. As to which one did, who knows?

The bottom line is it doesn't matter. GamePass will lead to butt tons of cash for MS and Exclusive games will lead to butt tons for Sony, while Nintendo makes more profit than both of them. They all go home rich and happy, and capitalism thrives as it should with investors getting dividends.

APU inside the xbox one X is 360,4mm^2 (wider memory bus + more CU's =  bigger chip)
The one inside the PS5 is rumored to be under 300mm^2.

PS5 also uses cheaper ram (they dont have to run as fast, so they can probably get away with a cheaper chip of memory)

PS5 cooling will without a doubt be more expensive, though probably not hugely so.
(the upside is I think, this also means a less noisy & more cool running chip, I expect it to use less power than the series X)

PSU = I expect the series X one to be slightly bigger and thus probably abit more costly.

The big thing against the PS5 is the controller (10-15$ more in parts?).
I expect Sony to have spendt abit more on this part than the xbox's.

SSD = sony spent abit more on it than Xbox, but thanks to it being 825GB instead of 1TB, I suspect its not by a large factor.

I still think overall the PS5 probably be slightly cheaper in to manufacture overall than the series X.

Yeah I correct my OP lol thanks.

And to be clear I don't think it's Sony's fault, as most console have a similar width. I think Microsoft just found a way to make much cheaper consoles by making them so far. Then they are paying less for parts as they aren't micro.