Sam Matskovets In the early hours of Thursday, Sony announced huge news for the PlayStation 5 family of consoles. All over the world, console prices are rising. The price increase for both PlayStation 5 models (one with a drive, one without) is effective immediately in at least six regions, with Japan joining the price hike battle on September 15. Sony’s announcement lists specific price increases for some of its biggest gaming regions, but additionally warns that “select markets” may see their own price increases in the coming days. These include territories in the Asia-Pacific region, Central and South America, and the vast cluster of nations that comprise EMEA (Europe, the Middle East and Africa). In some ways, one particular region is out of Sony’s price hike sights for now: the United States. PS5 Price Increases August 2022 New Old Rate Increase Europe €549.99 €499.99 10 Europe (All Digital) €449.99 €399.99 12.5 UK £479.99 £449.99 £449.99 £449.99 6.9 £99 £3.9 £399 UK £10 Japan (All-Digital)* 44,980 Yen 39,980 Yen 12.5 China 4,299 Yuan 3,899 Yuan 10.3 China (All-Digital) 3,499 Yuan 3,099 Yuan 12.9 Australia AU $799.95 AU$749.95 6.7 Australia (All-Digital) AU$649.95 AU$599. MX$13,999 7.1 Mexico (All-Digital) MX$12,499 MX$11,499 8.7 Canada 649.99 CA$629.99 CA$3.2 Canada ( all-digital) CA $519.99 CA $499.99 4

  • The price increase in Japan will not take effect until September 15, 2022. The price increase appears to be a fixed amount of currency in each affected region for both PS5 models. So, percentage-wise, the more affordable disc-less PS5 models are the most affected by today’s news. Canada is easier with today’s increase on a percentage basis, while Europe, Japan and China are tied for the toughest PS5 price hikes. Sony attributes the overall price jumps to two major economic factors: rising inflation and historic lows for the Japanese yen. US purchasing power doesn’t seem immune to any of these issues, so it’s unclear if Sony’s assurance that “there will be no price increase in the United States” is ironclad.

Bad news for the upcoming PSVR2?

The price hike follows similar news from Meta’s virtual reality division, which opted to raise prices for its Quest 2 VR system late last month. Meta tried to soften the impact of the $100 overall increase by including a free download of the popular rhythm action game Beat Saber, which normally retails for $30. Advertising
So far, Sony hasn’t suggested it will include free downloadables as part of its own price hike plan, though its price jump doesn’t currently appear to exceed 13 percent in any region, unlike with the Meta’s price increase reaching either 25 or 33 percent, depending on the model. Curiously, Sony’s announcement on Tuesday of its next virtual reality system, the PlayStation VR2, did not suggest a retail price. Perhaps Sony is keeping this news under wraps so it can buy more time to price this PS5 add-on amid current market realities. (This might cause some to rethink our recent speculations about PSVR2 prices.) Ars Technica’s Kyle Orland recently explored the history of console prices, though his analysis revolved primarily around the Nintendo Switch, a 2017 console that had more years to develop than its price-to-performance ratio. If this best-selling console had followed historical console pricing trends, Orland’s analysis suggests that its price might have dropped to somewhere between $150 and $180 in the United States by now. However, a combination of economic factors, including a chip shortage and unusually high demand for a years-old gaming system, has helped the Switch hold its original MSRP around the world. Orland’s report was prompted in part by Nintendo’s recent assurances to investors and financial regulators in its home country of Japan that the price of the Switch will not increase in the near future. Neither Sony nor Microsoft’s Xbox division had made similar promises before Thursday’s PS5 news. Microsoft enjoys a few advantages over Sony in the same inflation-ridden market: namely, a more diversified financial portfolio, more than double Sony’s cash reserves, and far less reliance on the Japanese yen. Time will tell if Microsoft will continue to absorb inflation-related costs to keep Xbox console prices stable.