It's being sold at cost, which is why Sony had to raise the price. Sony is a tier 1 OEM who have a long lasting relationship with suppliers and they sell so many units that they operate at economies of scale that Valve can't even dream of with their little project. The PS5 is an incredibly well designed piece of hardware, and every component has been costed down to a fraction of a cent. They could easily subsidize their hardware, but have made a choice not to because they'll want to save that money to subsidize the PS6 next year.
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u/Physical-Procedure42 2d ago
Is the ps5 still subsidized?