Sony will have already factored in the cost saving over the entire lifespan of the product. I recall that the original Playstation 3 was a massive loss leader.

Sony will have already factored in the cost saving over the entire lifespan of the product. I recall that the original Playstation 3 was a massive loss leader. Despite being hugely expensive it was pretty much the cheapest Blu Ray player on the market at the time. They were able to sell it at a loss because gaining a foothold was critical to selling it for a profit later on and the projected savings would let them recoup their losses. If cost of living and inflation weren't crazy right now across the world then I'm sure we'd be looking at a price drop on the Playstation 5 right now as that's where their projected margins would leave them. But factoring in both the cost savings and inflation means they still need a price rise just to keep on track.