[choudharism]

I generally agree with this reasoning, but your example could use some scaling down to convince a reader.

1 cent cheaper would net Sony a total of 500K USD for all PS5 units sold till date. So about a hundred PS5 units at retail as pure profit. A company of the size of Sony for a product of the scale of PS5 would absolutely forego that profit if the alternative offered any tangible benefits at all.

[Dalewyn]

>if the alternative offered any tangible benefits at all.

That's the thing though: A new generation console only needs to be better than it's predecessor. It doesn't have to have groundbreaking technologies or innovations, let alone be a pioneer paving the way forward for other computing hardware products.

So cost of materials remains the chief concern.