In Theory: Can the PS5 Digital Edition deliver a cheaper next-gen console?

The recent PlayStation 5 showcase climaxed with a rendered debut of the console's final form factor - showcasing a somewhat controversial, and indeed gigantic design. But what nobody predicted was the reveal of two PlayStation 5 consoles. Arriving alongside the standard model is a new digital edition, which is essentially the same but lacking the UHD Blu-ray drive. Crucially, Sony didn't share pricing, with CEO Jim Ryan categorically shutting down the topic in a post-reveal interview with the BBC. We should expect an expensive console, but to what extent can the digital edition bring a more affordable machine to the market?

Let's discuss the baseline costs first. Based on initial specs, I had high hopes that Sony would deliver PS5 at the same $399 price-point that served PS4 and PS4 Pro so well - but now I find that harder to believe. Xbox One X launched three years ago at $499. PS5 has more memory that's more expensive to buy, its processor (though likely physically smaller) is using a more expensive fabrication process, the cooling is clearly more substantial and that's before we factor in the SSD and a more advanced joypad, and a much larger case.

Costs reduce over time of course, but looking over the consumer electronics market as a whole over the last three years, prices seem to be static or even rising with new product launches. We've seen flagship smartphones break the $1000 barrier (and go higher, even) for example, while closer to home, the move to 7nm semiconductor fabrication did not deliver a disruptive impact to pricing in the PC graphics market: AMD's RX 5700XT is comparable in some respects to PlayStation 5, it has less memory, and it still sells for $400.

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