PS5 price: Sony reveals how much its next-gen consoles will cost

The long wait is finally over. During September 16's PlayStation 5 Showcase, Sony Interactive Entertainment finally confirmed the prices for both the PS5 and the PS5 Digital Edition alongside the release date and pre-order date reveal. The prices aren't all that surprising, but fans can take solace in the fact that the game of chicken Microsft and Sony had for revealing their consoles' prices is finally over.

How much does the PS5 cost?

At the start/end of the PS5 Showcase, Sony confirmed that the PS5 costs $499 and that the PS5 Digital Edition costs $399. These prices are about on par with expectations for the system. Unfortunately, Sony did not reveal or confirm any sort of payment program like Xbox All Access, so you will have to get these consoles at full price when they release this November.

Comparing it to Xbox's next-gen consoles, the PS5 and Xbox Series X both ended up being the same price: $500. The PS5 Digital Edition, on the other hand, is still $100 more expensive than the Xbox Series S.

While $399 is a decent digital-only entry-level price, the fact that Sony did sacrifice any hardware power as Microsoft did with the Xbox Series S means that the price couldn't be lowered as much. Still, if you're looking to save a bit of money it'll be cheaper to go with the PS5 Digital Edition when the console comes out in November.

More stories from Sony’s September 16 PlayStation 5 Showcase:

• PlayStation 5 finally has a release date, right on the heels of Xbox Series
• PS5 Standard vs. Digital Edition price, specs, features, and which to buy
• PS5 vs. Xbox Series X price breakdown: Which model to pick
• PS5 pre-order guide: How to reserve Sony's console in case it sells out
• God of War Ragnarok teaser confirms Kratos and Atreus come to PS5 in 2021
• Final Fantasy 16 release date, trailer, and story for the PS5 timed exclusive

Did the price leak?

It does turn out that many of the guesses from analysts and leaks on storefronts were fairly accurate to the final price of the PS5 and PS5 Digital Edition. As far back as February 2020, over a month before the PS5's hardware was first detailed, Bloomberg and Niko Partners Analyst Daniel Ahmad guessed fairly accurate prices for the next-generation consoles.

Bloomberg reported earlier this year that the PS5 costs $450 per unit on Sony's end and that the console would at least have to be at least $470 to have a profitable gross margin. Analyst Daniel Ahmad backed this report up on Twitter. "Build cost is not the retail price," he said. "As the article states, a $450 build cost would probably result in a retail price close to $500." Turns out, their inclination of the PS5's price was right.

Just a day ahead of the official announcement, the price was leaked by a Spanish storefront. As was spotted by Vandal and Tom's Guide, the PS5 and PS5 Digital Edition showed up in the internal systems of major Spain retailer El Corte Ingles. The prices were $399 for PS5 Digital Edition and $499 for PS5, which both turned out to be right.

The Inverse Analysis -- While it isn't cheap, the prices for PS5 and PS5 Digital Edition are about what Inverse, as well as many of the readers that we polled, expected.

Both major next-gen consoles will cost people the same amount, so hardcore gamers will have to be ready to spend $1000 for both next-generation consoles. Meanwhile, the $299 Xbox Series S is still more appealing than the $400 PS5 Digital Edition, even though Sony's console does offer a cheaper alternative for those who want to save a bit of money when they pick up a new system.

PS5 will be released in November 2020 for $499.