In this illustration, the PlayStation 5 logo is displayed on a smartphone.
Mateusz Slodkowski | SOPA images | LightRocket via Getty Images
Sony on Thursday raised the recommended retail price of the PlayStation 5 console in some international markets citing the global economic environment, including high inflation.
The Japanese gaming giant says the price increases are effective immediately except in Japan, where they will begin on September 15.
Sony does not increase the price of PS5 in the US
“The global economic environment is a challenge that many of you around the world are certainly experiencing,” Sony said in a blog post. “We are seeing high global inflation rates, as well as adverse currency trends, impacting consumers and putting pressure on many industries.”
The company said “based on these challenging economic conditions” it has decided to increase the price of its flagship console.
Here are the new boosts and prices for the PS5:
- Europe: 50 euros ($50) increased to 549.99 euros for the disc version and 449.99 euros for the digital version
- UK: £30 increased to £479.99 for the disc version and £399.99 for the digital model
- Japan: Up 5000 yen to 54,980 yen for the disc version and 44,980 yen for the digital model
- China: Up 400 yuan to 4,299 yuan for the disc version and 3,499 yuan for the digital model
- Australia: Up AU$50 to AU$799.95 for the disc version and AU$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 increased to C$649.99 for the disc version and C$519.99 for the digital model
Sony’s price hike comes amid slumping game companies including Nintendo and Microsoft, whose sales tumbled in the second quarter due to the outbreak caused by the pandemic began to dry up.
Sales at Sony’s gaming division 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 games division.
Sony is also facing ongoing issues in the supply chain that make it difficult to produce enough PS5 consoles to meet demand. There has been a significant shortage of PS5 globally.
Xbox rival, produced by Microsofthas yet to announce any price hikes.
Given the fact that “the PS5 has been severely limited in supply since its launch, with many consumers unable to purchase Sony’s latest console and the fact that Microsoft has not shown any sign of a price increase Its Xbox Series, there is no doubt about this price increase, Piers Harding-Rolls, director of research at Ampere Analysis, wrote in a note Thursday.
“However, with inflation and price increases being felt through the component supply chain, much of which is priced in US dollars, coupled with continued high distribution costs, Sony has now had to move some of those cost increases to try to maintain their hardware profits on target.”
Ampere Analysis estimates that Sony has sold 21 million PS5 consoles worldwide compared with Microsoft’s Xbox Series console of 13.8 million.
Harding-Rolls said he doesn’t expect this to affect gamers’ desire to buy a PlayStation 5 as demand remains high.
“While we believe there will be disappointment for some consumers who have tried unsuccessfully to buy a PS5 or have saved up to buy a console just in time for prices to rise, the high demand for the Sony means this A price increase of about 10% across most markets will have minimal impact on console sales,” he said.
“We expect Sony’s sales forecast for PS5 to be flat.”
