Sony raised the recommended retail price of its PlayStation 5 games console in a number of international markets on Thursday, citing the global economic environment, which included high inflation.
The price increases are effective immediately, except in Japan, where they will begin on September 15. Sony will not raise the price of the PS5 in the United States.
“The global economic environment is undoubtedly a challenge for many of you around the world,” Sony wrote in a blog post. “We are witnessing high global inflation rates as well as negative currency trends, which are affecting consumers and putting pressure on many industries.”
ALSO READ: Apple will now allow you to repair specific MacBooks yourself.
The company stated that it has decided to raise the price of its flagship console “in light of these challenging economic conditions.”
These are the hikes and new prices for the PS5:
- Europe: 50 euro ($50) increase to 549.99 euros for the disc version and 449.99 euros for the digital version
- UK: £30 increase to £479.99 for the disc version and £399.99 for the 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: 50 Australian dollar increase to 799.95 Australian dollars for the disc version and 649.95 Australian dollars 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: 20 Canadian dollars increase to 649.99 Canadian dollars for the disc version and 519.99 Canadian dollars for the digital model
Sony’s price increase comes as gaming companies such as Nintendo and Microsoft saw their sales fall in the second quarter as the pandemic-induced boom began to fade.
In the June quarter, sales at Sony’s gaming division fell 2% year on year, while operating profit fell nearly 37%. In addition, the Japanese conglomerate reduced its full-year profit forecast for its gaming division.
Sony is also contending with continued supply chain issues that make it difficult to make enough PS5 consoles to meet demand. There has been a significant global shortage of PS5s.
Microsoft’s rival Xbox has yet to announce any price increases.
Given that “the PS5 has been severely supply constrained since launch, with many consumers unable to buy Sony’s latest console, and the fact that Microsoft has shown no indication yet of increasing its Xbox Series pricing,” Piers Harding-Rolls, research director at Ampere Analysis, wrote in a note on Thursday.
“However, with inflation and price increases felt throughout the component supply chain, much of which is priced in US dollars, and continued high distribution costs, Sony has now been forced to pass on some of those cost increases to try and maintain its hardware profitability targets.”
According to Ampere Analysis, Sony sold 21 million PS5s worldwide, while Microsoft sold 13.8 million Xbox Series consoles.
Harding-Rolls stated that he does not expect this to deter gamers from purchasing a PlayStation 5 because demand remains high.
“While we believe there will be disappointment for some consumers who have been trying to buy a PS5 without success, or who were saving to buy the console just in time for the price to increase,” he said. “However, the high pent-up demand for Sony’s device means that this price increase of around 10% across most markets will have little impact on console sales.”
“We expect Sony’s PS5 sales forecast to remain unchanged.”
Sony’s price increase comes as gaming companies such as Nintendo and Microsoft saw their sales fall in the second quarter as the pandemic-induced boom began to fade.
In the June quarter, sales at Sony’s gaming division fell 2% year on year, while operating profit fell nearly 37%. In addition, the Japanese conglomerate reduced its full-year profit forecast for its gaming division.
Sony is also dealing with ongoing supply chain issues, making it difficult to produce enough PS5 consoles to meet demand. There has been a significant global shortage of PS5s.
Microsoft’s rival Xbox has yet to announce any price increases. Microsoft’s Xbox Series consoles sold 13.8 million units.
Harding-Rolls stated that he does not expect this to deter gamers from purchasing a PlayStation 5 because demand remains high.
“While we believe there will be disappointment for some consumers who have been trying to buy a PS5 without success, or who were saving to buy the console just in time for the price to increase,” he said. “However, the high pent-up demand for Sony’s device means that this price increase of around 10% across most markets will have little impact on console sales.”
“We expect Sony’s PS5 sales forecast to remain unchanged.”
