The PlayStation 5 gaming console’s suggested retail price was increased by Sony on Thursday in a number of overseas regions, citing the challenging global economy and significant inflation.
The price increases took effect immediately, with the exception of Japan, where they started on September 15.
Sony won’t be boosting the PS5’s pricing in America.
“The global economic environment is a challenge that many of you around the world are no doubt experiencing,” in a blog post, Sony stated. “We’re seeing high global inflation rates, as well as adverse currency trends, impacting consumers and creating pressure on many industries.”
The business announced that it has decided to increase the price of its flagship console “based on these challenging economic conditions.”
The PS5’s pricing increases and new prices are as follows:
- Europe: A 50 euro rise brings the disc version’s price to 549.99 euros and the digital version’s price to 449.99 euros.
- UK: A £30 rise brings the disc version’s price to £479.99 and the digital version’s to £399.99
- Japan: A 5000 yen rise brings the disc version’s price to 54,980 yen and the digital version’s price to 44,980 yen.
- China: A 400 Yuan rise brings the disc version’s price to 4,299 Yuan and the digital version’s price to 3,499 Yuan.
- Australia: A 50 Australian dollar rise brings the disc version’s price to 799.95 Australian dollars and the digital version’s to 649.95 Australian dollars.
- Mexico: 1,000 Mexican pesos now equal 14,999 and 12,499 pesos, respectively, for the disc and digital versions of the product.
- Canada: A 20 Canadian dollar increase brings the disc version’s price to 649.99 Canadian dollars and the digital version’s price to 519.99 Canadian dollars.
Sony’s pricing increase coincides with a downturn for gaming companies like Nintendo and Microsoft, whose revenues declined in the second quarter as the pandemic’s surge started to fade.
In the June quarter, sales at Sony’s gaming division fell 2% year over year while operating profit fell by almost 37%. The Japanese goliath reduced its gaming division’s full-year earnings prediction as well.
It is challenging for Sony to produce enough PS5 systems to meet demand due to ongoing supply chain difficulties. There has been a noticeable PS5 shortage worldwide.
Microsoft’s competitor Xbox has not yet disclosed any price increases.
Due to the fact “that the PS5 has been severely supply constrained since launch, with many consumers unable to buy Sony’s latest console, and the fact that Microsoft has shown no indication yet of increasing its Xbox Series pricing, there is no doubt that this price increase will have been a hard decision to make,” Ampere Analysis’ research director, Piers Harding-Rolls, penned a message on Thursday.
“However, with inflation and price increases being felt through the component supply chain, much of that priced in US dollars, alongside continued high costs in distribution, Sony has now had to pass on some of those cost increases to try and maintain its hardware profitability targets.”
In comparison to Microsoft’s Xbox Series consoles, which had sold 13.8 million units, Ampere Analysis believes that Sony had sold 21 million PS5s globally.
Given the continued high demand for PlayStation 5, Harding-Rolls stated that he does not anticipate this to discourage people from purchasing one.
“While we believe there will be disappointment for some consumers that have been trying to buy a PS5 without success, or that were saving to buy the console just in time for the price to increase, the high pent up demand for Sony’s device means that this price increase of around 10% across most markets will have minimal impact on sales of the console,” he said.
“We expect Sony’s sales forecast for the PS5 to remain unchanged.”