Mateusz Slodkowski | SOPA Images | LightRocket via Getty Images Sony on Thursday raised the recommended retail price of its PlayStation 5 game console in several international markets citing the global economic environment, including high inflation. The Japanese gaming giant said the price increases are effective immediately, except in Japan where they will start on September 15. Sony is not raising the price of the PS5 in the US “The global economic environment is a challenge that many of you around the world are no doubt facing,” Sony said in a blog post. “We are seeing high rates of inflation globally, as well as adverse exchange rate trends, which are affecting consumers and putting pressure on many industries.” The company said that “based on these difficult economic conditions”, it decided to increase the price of the flagship console. Here are the increases and new prices for the PS5:
Europe: €50 ($50) increase to €549.99 for the disc version and €449.99 for the digital version UK: Up £30 to £479.99 for disc version and £399.99 for digital model Japan: 5000 yen increase to 54,980 yen for the disc version and 44,980 yen for the digital model China: 400 yuan increase to 4,299 yuan for the disc version and 3,499 yuan for the digital model Australia: A$50 increase to A$799.95 for the disc version and A$649.95 for the digital model Mexico: 1,000 Mexican pesos increased to 14,999 Mexican pesos for the disc version and 12,499 Mexican pesos for the digital model Canada: C$20 increase to C$649.99 for the disc version and C$519.99 for the digital model
Sony’s price hike comes amid a downturn for gaming companies such as Nintendo and Microsoft, which saw sales slide in the second quarter as the pandemic-induced boom begins to fade. Sales at Sony’s gaming unit fell 2% year-on-year in the June quarter, while operating profit fell nearly 37%. The Japanese giant also cut its full-year profit forecast for its gaming division. Sony is also facing supply chain issues that are making it difficult to produce enough PS5 consoles to meet demand. There has been a notable shortage of PS5s worldwide. Rival Xbox, which is manufactured by Microsoft, has yet to announce any price increases. Given the fact that the PS5 has been largely limited since its launch, with many consumers unable to purchase Sony’s latest console, and the fact that Microsoft has yet to show any signs of raising the price of the Xbox line, there is no doubt that this price increase would be a difficult decision to make,” Piers Harding-Rolls, director of research at Ampere Analysis, wrote in a note on Thursday. “However, with inflation and price increases being felt through the parts supply chain, much of the price in US dollars, alongside continued high costs in distribution, Sony has now had to pass on some of these cost increases to to try to maintain the profitability of its material. targets”. Ampere Analysis estimated that Sony had sold 21 million PS5s worldwide compared to Microsoft’s Xbox series of consoles at 13.8 million. Harding-Rolls said he doesn’t expect this to put off gamers looking to buy a PlayStation 5 as demand remains high. “While we believe there will be disappointment for some consumers who tried to buy a PS5 without success, or who saved up to buy the console in time for the price increase, the high demand for Sony’s device means that this The increase in the price of of 10% in most markets will have minimal impact on console sales,” he said. “We expect Sony’s PS5 sales forecast to remain unchanged.”
