That is more than the $300 price tag for Microsoft’s less powerful Xbox Series S, which also has no disk reader.
Sony’s margin on the consoles will be slim —possibly even loss-making — analysts say, and the firm is counting on sales of games, services and online subscriptions to turn a profit.
So far, demand looks strong, and Sony has reportedly boosted production targets. But meeting those will depend on suppliers, particularly TSMC, the Taiwanese firm that makes the PS5’s processor and graphics-processing unit.
It is already under pressure as a key producer of chips for 5G-compatible smartphones.
“Whatever Sony produces, it will sell,” said Yasuo Imanaka, an analyst at Rakuten Securities, who thinks PS5 could exceed the record 157 million PS2 units sold since the 2000 launch. But “everything depends on what TSMC can supply”, he said.
To stand out against the Xbox, Sony will be counting on its games line-up, including exclusive titles that Sony Interactive Entertainment president Jim Ryan says will “make or break” PS5.
Among its trump cards is “Spider-Man: Miles Morales”, which will be released with the new console. Its predecessor is among the best selling PS4 titles.
The game was developed by the American studio Insomniac Games, which Sony bought last year for $229 million.
The purchase brought the number of studios Sony owns to 14, and represents a popular strategy of bringing increasingly expensive game development in-house.
Microsoft has made its own forays, buying ZeniMax in September for a record $7.5 billion.
Despite the costs, Amir Anvarzadeh, a strategist at Asymmetric Advisors, said the trend makes sense given the risk of diminishing returns for console manufacturers on games produced by third-party developers.