Sony has yet to price its next game console, the PS5, but if it wants to keep the price low, it will have to fight.

Bloomberg reported from sources inside Sony that the PS5 will cost more than the PS4 due to the cost of using DRAM and flash memory. These critical components are in short supply due to their popularity among smartphone makers, including Samsung and its new Galaxy S20 series.

Macquarie Capital analyst Damien Tong expects the final price of the PS5 to be around $470. This is $70 more than the most expensive current PlayStation, the $400 PS4 Pro.

The PlayStation 4's early success against the Xbox One can be attributed in part to the price difference at launch, with the PS4 at $399 and the Xbox at $499. Sony is keeping a close eye on how much Microsoft will price the Xbox Series X, but that information is likely to be released in the next few months, or by E3 2020 in June at the latest.

However, sources have more positive news. Sony plans to release many PS5 games on PS4 as well, so players will be able to access the same titles on the older hardware. Also, the PlayStation Now subscription service will be renewed, so Sony may be able to keep the price of the console low with the steady revenue from the subscription service.

Finally, Bloomberg's sources also confirmed rumors that Sony will release a new version of the PlayStation VR headset after the console's launch.