Sony Reportedly Working on Redesigned PS5 SoC on 6 nm for 2022
It's not only graphics cards and CPUs that are best kept on the edge of manufacturing processes; in truth, one could even say that consoles have more to gain from these transitions when it comes to their manufacturers' financial outlooks. This happens because usually, consoles are subsidized by manufacturers in that their actual retail price is lower than manufacturing costs; this works as a way for console players to increase their platforms' attractiveness and user base, so they can then sell them games and subscription services, where the big bucks are actually made. We knew this already, but Microsoft's head of Xbox business development, Lori Wright confirmed it yesterday at the Apple vs Epic Games hearing. Lori Wright is quoted as answering "We don't; we sell the consoles at a loss" when asked whether Microsoft does or does not turn a profit on Xbox Series S | X hardware sales.
Considering the similarities between the Xbox Series X and PS5's SoC, it's very likely that Sony doesn't make a profit on console hardware sales either - or if it actually does, it's nothing actually meaningful. This is part of the reason why consoles are usually actually in the forefront of manufacturing processes' advancements, as it's a way for console players to quickly reduce the BoM (Bill of Materials) for their consoles. Since the specifications don't change within a console generation (discounting Pro models, which both companies have taken to launching some years into their generations), they choose to take advantage of process advancements due to the transistor density increases that allow for both lower silicon area for the SoC, and lower power consumption - which sometimes enables them to develop slim versions of their gaming consoles.
Considering the similarities between the Xbox Series X and PS5's SoC, it's very likely that Sony doesn't make a profit on console hardware sales either - or if it actually does, it's nothing actually meaningful. This is part of the reason why consoles are usually actually in the forefront of manufacturing processes' advancements, as it's a way for console players to quickly reduce the BoM (Bill of Materials) for their consoles. Since the specifications don't change within a console generation (discounting Pro models, which both companies have taken to launching some years into their generations), they choose to take advantage of process advancements due to the transistor density increases that allow for both lower silicon area for the SoC, and lower power consumption - which sometimes enables them to develop slim versions of their gaming consoles.