May 23, 2024

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Sony raises PlayStation 5 price due to high inflation

Sony raises PlayStation 5 price due to high inflation

In this image illustration, the PlayStation 5 logo is shown on a smartphone.

Mateusz Slodkowski | SOPA photos | LightRocket via Getty Images

Sony On Thursday it raised the recommended retail price of the PlayStation 5 game console in several international markets citing the global economic environment, including high inflation.

The Japanese gaming giant said the price hike is effective immediately except in Japan where it will start on September 15.

Sony does not raise the price of PS5 in the US

“The global economic environment is undoubtedly a challenge that many of you around the world face,” Sony said in a blog post. “We are seeing high global inflation rates, as well as currency opposite trends, which are affecting consumers and creating stress in many industries.”

“Based on these difficult economic conditions,” the company said, it has decided to raise the price of its main console.

These are the new highs and prices for the PS5:

  • Europe: €50 ($50) increased to €549.99 for the disc version and €449.99 for the digital version
  • United kingdom: £30 increment to £479.99 for the disc version and £399.99 for the digital model
  • Japan5,000 yen, increased to 54,980 yen for the disc version and 44,980 yen for the digital model
  • China: 400 yuan for the disc version 4299 yuan and 3499 yuan for the digital model
  • Australia: A$50 increase to A$799.95 for a disc copy and A$649.95 for a digital model
  • Mexico: Increased 1,000 MXN to 14,999 MXN for the disc version and 12,499 MXN for the digital model
  • Canada: $20 CAD increment to $649.99 CAD for a disc copy and $519.99 CAD for a digital form
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Sony’s price hike comes amid a slump for gaming companies including Nintendo and Microsoft, which saw their sales decline in the second quarter with The boom caused by the epidemic is starting to fade.

Sales at Sony’s game console were down 2% year over year in the June quarter while operating profit was down nearly 37%. The Japanese giant also lowered its full-year earnings forecast for its gaming division.

Sony is also dealing with ongoing supply chain issues that make it difficult to build enough PS5 consoles to meet demand. There has been a noticeable shortage of PS5s globally.

Xbox competitor, which is manufactured by MicrosoftNo price hike has yet been announced.

Given the fact that “the PS5 has been severely restricted in supply since its launch, with many consumers unable to purchase Sony’s latest console, and the fact that Microsoft has yet to show any indication of an Xbox Series price increase, there is no doubt that this increase in Prices will be a difficult decision,” Pierce Harding Rolls, director of research at Ampere Analysis, wrote in a note Thursday.

“However, with inflation feeling and price increases going through the component supply chain, a lot of that is priced in US dollars, along with continuing higher costs in distribution, Sony now has to pass some of these cost increases to try to maintain the profitability of its hardware goals. “.

Ampere analysis estimates that Sony sold 21 million PS5s worldwide compared to Microsoft’s Xbox Series consoles at 13.8 million.

Harding Rolls said he doesn’t expect this to deter gamers wanting to buy a PlayStation 5 given that demand remains high.

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“While we think there will be disappointment for some consumers who have tried to buy the PS5 without success, or who were saving up to buy the console in time for the price increase, pent-up demand for the Sony device means this price increase of about 10% in most markets will have an impact. meager on console sales.”

“We expect Sony’s PS5 sales forecast to remain unchanged.”