This photo illustration shows the PlayStation 5 logo displayed on a smartphone.
Mateusz Slodkowski | SOPA Images | Lightrocket via Getty Images
Sony On Thursday, it raised its recommended retail prices for 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 would take effect immediately, except for Japan, which will begin on September 15th.
Sony hasn’t increased the PS5 price in the US
“The global economic environment is a challenge that many people around the world are undoubtedly experiencing,” Sony said in a blog post. “High inflation and unfavorable currency performance globally are impacting consumers and putting pressure on many industries.”
The company has decided to raise the prices of its flagship consoles “based on these difficult economic conditions.”
These are the PS5 price increases and new prices.
- Europe: 50 euro ($50) price increase, 549.99 euros for disc and 449.99 euros for digital
- England: £30 to £479.99 for disc version and £399.99 for digital model
- Japan: 5,000 yen more Disc version 54,980 yen, Digital version 44,980 yen
- China: Disc version increased by 400 yuan to 4,299 yuan, digital version 3,499 yuan
- Australia: A$50 price increase, $799.95 AUD on disc, A$649.95 AUD digital
- Mexico: 1,000 Mexican pesos increased to 14,999 Mexican pesos on disc and 12,499 Mexican pesos on digital model.
- Canada: $20 CAD increases to $649.99 CAD for the disc version and $519.99 CAD for the digital model.
Sony’s price hike comes amid a slump in game companies such as Nintendo and Microsoft. Pandemic-induced boom begins to wane.
Sony’s games division’s sales fell 2% year-on-year in the June quarter, while operating profit plunged nearly 37%. The Japanese giant also cut its full-year earnings forecast for its gaming division.
Sony is also grappling with ongoing supply chain issues that make it difficult to manufacture enough PS5 consoles to meet demand, with the global shortage of PS5s being noticeable.
Rival Xbox made by microsofthas not yet announced a price increase.
“Given the fact that many consumers have been unable to afford Sony’s latest console, the PS5 has been severely constrained in supply since its launch, and the fact that Microsoft has yet to show any signs of raising the price of the Xbox series, this price increase is There is no doubt that it will be a difficult decision,” Piers Harding-Rolls, research director at Ampere Analysis, wrote in a note Thursday.
“However, with inflation and rising prices being felt throughout the component supply chain, many of which are denominated in the U.S. dollar, and distribution costs remaining high, Sony intends to reduce these costs in an effort to keep its hardware profitable. We had to pass on some of the rise in the target.”
Ampere Analysis estimates that Sony sold 21 million PS5 units worldwide, compared to 13.8 million for Microsoft’s Xbox series consoles.
Harding-Rolls said he doesn’t think this will deter gamers wanting to buy a PlayStation 5, given that demand remains high.
“While we believe there will be disappointment for some consumers who have tried to buy a PS5 with no success and some who were saving up to buy the console in time for the price to rise, Sony “It means there is a high build-up of demand for our devices. A price increase of around 10% in most markets will have minimal impact on console sales,” he said.
“We expect Sony’s sales forecast for PS5 to remain unchanged.”