Highlights:
- In the UK, Europe, Japan, China, Australia, Mexico, and Canada, Sony is raising the price of the PS5.
- Except for the price rise for Japan, which will take effect on September 15, the new pricing is effective right away.
- Prices are increasing by 10% in Europe, 21% in Japan, and about 6% in the UK as inflation rates have an effect on Sony and many other companies.
Following economic constraints like rising interest rates, Sony Group Corp. announced on Thursday that it was raising the price of its PlayStation 5 gaming console in markets including Europe, Japan, and Britain.
The disc drive-equipped version of the console will now cost 549.99 euros ($550.81), up from the previous price of 499.99 euros in Europe. A similar price increase will also take place in Japan, according to Sony.
In the United States, where it is in a price competition with Microsoft Corp.’s Xbox, which is actively growing its games subscription service, the Japanese entertainment conglomerate stated there would be no price increases.
“We’re seeing high global inflation rates, as well as adverse currency trends, impacting consumers and creating pressure on many industries,” Sony Interactive Entertainment Chief Executive Jim Ryan wrote in a blog post.
The price increase comes as hardware shortages and supply chain constraints have put pressure on Sony’s games business. The company is attempting to boost PS5 production for the year-end shopping season.
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Gaming chief Ryan stated that while the price increase “is a necessity given the current global economic environment and its impact on SIE’s business, our top priority continues to be improving the PS5 supply situation,” addressing the PS5 supply problem “continues to be our top goal.”
After selling 11.5 million units in the current financial year that ended in March, Sony plans to sell 18 million units in the year ended March.
“Although wide ranging, the PS5 price increases are relatively nuanced and are taking place in markets where the impact is being felt the most with an added layer of squeeze coming from the strength of the U.S. dollar,” Ampere Analysis analyst Piers Harding-Rolls wrote in a blog post.
“Microsoft will take advantage of Sony’s increase to push its ‘value’ message,” Harding-Rolls added.
