PlayStation 5 price bump hits Europe, Australia, and NZ, Sony blames the economy

[Shawn Knight]

In a nutshell: Sony has increased the price of its original PlayStation 5 console in several regions, citing a challenging economic environment that includes both high inflation and fluctuating exchange rates. Aren't prices for aging consoles supposed to go down over time, not up?

In Europe, the PS5 digital edition now carries a recommended retail price (RRP) of 499.99 euros. That's up from the previous rate of 449.99 euros and the 399 euro launch price when the system debuted a little over four years ago. In the UK, you'll now pay £429.99 for a PS5 digital edition (previously £389.99).

The PS5 with disc drive will retain its existing price point in these regions, Sony said. In Australia and New Zealand, however, both the PS5 with disc drive and digital editions are now more expensive. In Australia, it's now AUD $829.95 for the drive version or $749.95 for the digital variant; New Zealanders will pay NZD $949.95 for a model with a disc drive or NZD $859.95 for a PS5 digital.

Note that pricing for the newer PS5 Pro remains unchanged in all regions.

Historically, console prices decrease as a system ages, and especially after slim models or mid-cycle variants are released. Sony has bucked that trend with the PS5, and this isn't the first time they've increase the console's cost.

In the summer of 2022, Sony raised the price of the PS5 in several regions outside of the US. A challenging global economic environment was cited as the reason for that hike. In fairness, the industry was also just coming out of the chip shortage brought about by the Covid-19 pandemic a few years earlier.

The fact that Sony is leaving PS5 Pro pricing alone (for now) could suggest the company wants to steer buyers toward its more expensive option, although some will argue that the Pro is already overpriced as-is.

For now, PS5 pricing in the US remains unchanged, but will it last? Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, told CNBC he would be surprised if Sony was able to keep PlayStation prices stable in the US. "Now is the 'right' time for the company to hike prices because user backlash would be comparably limited," Toto noted.

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PlayStation 5 price bump hits Europe, Australia, and NZ, Sony blames the economy

 

[noel24]

Well, end of Sony is upon Us. Failed games, no interesting exlusives, and now, trying to put US tariff turmoil on everyone but US. When Dollar is loosing value by the day. They are Japanese in theory, should be embracing other markets than US, not milk them. Goodbye Sony.

 

[BopoIsHere]

I'm not surprised. The past four years of worldwide inflation has made everything more expensive.

 

[The Talking Tech]

Very disappointed in Sony, by now older hardware such as the PS5 should be going lower in cost, Not higher.

 

[DZillaXx]

Well, end of Sony is upon Us. Failed games, no interesting exlusives, and now, trying to put US tariff turmoil on everyone but US. When Dollar is loosing value by the day. They are Japanese in theory, should be embracing other markets than US, not milk them. Goodbye Sony.

The Dollar is the world standard...

The Dollar inflates, the rest of the world inflates

Internationally it has always been the Dollar.

For your Local Economy things are different. But when things are imported into your country you can damn well be sure that it is priced in reference to the USD.

 

[noel24]

The Dollar is the world standard...

The Dollar inflates, the rest of the world inflates

Internationally it has always been the Dollar.

For your Local Economy things are different. But when things are imported into your country you can damn well be sure that it is priced in reference to the USD.

That's true, but It doesn't have to be in the future. Look at 2007/2008. Around the subprime mortage crash it lost half of It's value, I remeber, cause back then I bought 8800GT for third the price of new 9800GT, due to currency fluctuations. I remember US gangsta rappers flashing Euros in their music videos. And US$ was a "gold standard" since WW2 and Marshall plan. If Trump decided to destroy friendly relationship with Western World it kept subordinated by carrot since 1945, US$ may not be a "golden standard" in few years time. Everything will depend on the confidence of investors. And Trump seems to send confusing signals.

 

[Billybobjoey]

Very disappointed of Sony, by now older hardware such as the PS5 should be going lower in cost, Not higher.

Seems like that's a thing of the past now sadly. Sony, Xbox, and even Nintendo haven't really dropped prices outside of temporary sales.

 

[kiwigraeme]

The Dollar is the world standard...

The Dollar inflates, the rest of the world inflates

Internationally it has always been the Dollar.

For your Local Economy things are different. But when things are imported into your country you can damn well be sure that it is priced in reference to the USD.

Trust in USD and TBonds tanking. Lots of problems ahead , lots of Tbonds coming up for renewal year end , USA wants to take on lots more more debt for tax breaks for super rich
Mortgage markets , all the consumer, car lending and all running close to the wind= remember the junk mortgages - way that was minor depending what can happen now

If people lose fed jobs, small businesses collapsing in large numbers relying on chinese parts , farmers able to sell soya beans , pork etc . Disney and movies tanking

That debt is going to be like a tidal wave , will also tank 401Ks ( spending ) and consumer confidence
house prices tanking maybe
USD is struggling with greek Bonds

 

[Jack77]

I'm not surprised. The past four years of worldwide inflation has made everything more expensive.

The article states that the price was already upped in 2022 in 'selected' regions. Inflation decreased tremendously throughout 2023, at least in the EU.

Could there also be an aspect of 'make non-US citizens pay for US import tariffs' involved?

 

[ZedRM]

Another reason not to buy PS5? Good job Sony!

 

[LimyG]

The Dollar is the world standard...

The Dollar inflates, the rest of the world inflates

Internationally it has always been the Dollar.

For your Local Economy things are different. But when things are imported into your country you can damn well be sure that it is priced in reference to the USD.

Yes, indeed. That has always been the case however and there have been huge currency swings in the past. At one time, $1.00 = Euro 1.00 = British pound 1.00.

Companies are expected to plan for this and absorb losses. Also if the price were to go up for exchange rate changes, do you they would lower it again when exchange rates were more favourable.

What annoys me, is that there is no mention of a price increase in the USA. That is a case where there is a real reason, that would affect customers, unless Sony paid the huge tariffs on behalf of the customer.

I don't know where Sony manufactures it's Playstation 5s, but if in Japan the tarrif is currently pretty high. If in China it is 145%, making importing the product unviable.

What the hell is up with Sony. Terrified of the USA and there non thought out tariffs no doubt. Screw them.

 

[LimyG]

Trust in USD and TBonds tanking. Lots of problems ahead , lots of Tbonds coming up for renewal year end , USA wants to take on lots more more debt for tax breaks for super rich
Mortgage markets , all the consumer, car lending and all running close to the wind= remember the junk mortgages - way that was minor depending what can happen now

If people lose fed jobs, small businesses collapsing in large numbers relying on chinese parts , farmers able to sell soya beans , pork etc . Disney and movies tanking

That debt is going to be like a tidal wave , will also tank 401Ks ( spending ) and consumer confidence
house prices tanking maybe
USD is struggling with greek Bonds

That may all well be true, especially if China sells off it's huge holding of Bonds. Effectively China, and previously Japan, loned money to the USA (bonds) so that Americans could buy Chinese goods.

If China wanted to wreak havoc, a possible super depression on the USA they have the tools to do it. Sell there bonds. The dollar would be worth little more than the paper it's printed on.

While China is an unfair trader, and does deserve targeted tariffs, or other barriers, the incompatence of sweeping tariffs by Trump shows what a danger this man is for the USA economy - and by default it will affect the entire world economy.

China has the potential to destroy the U.S, economy. If you are not brushed up on macro economics google the topic. Selling bonds.

Already they are planning to, or have banned real earth minerals.

USA is the biggest economy but it's on shaky foundations. The amount of debt, a fair bit held in the form of bonds would allow China (or even Japan) to totally wreck the dollar.

A big advantage of the USA that no other country has is that the dollar is the reserve currency. It couldn't serve that purpose if China played hard ball and sold off all, or even half of it's USD 10 year bonds.

All of this hurts everyone, but China, if willing to play really hard has the upper hand over the USA.
The huge debt, about $37 TRILLION dollars would be unsustanable for any other country, even if using a ratio of GDP to match the debt.

In other words, it's a house of cards that has worked wonderfully for the USA, and there is no reason for that to ever change.

However, Trump is playing with fire and opening the path to destroy the U.S economy.

I hope it doesn't come to that, but it is a real possibility. China has all the cards, or most of them when comparing USA to China.

Trump is a fool. He could have approached this carefully and in a targeted manner. Instead just sweeping rates, based on false data. Clearly, a lot of Americans don't realize how precarious their economic situation is - but only because Trump is doing things that would have been unthinkable.

Worse, he keeps changing his mind, that puts planning a large investment on hold. The leader of the free world doesn't understand basic economics.

 

[kiwigraeme]

That may all well be true, especially if China sells off it's huge holding of Bonds. Effectively China, and previously Japan, loned money to the USA (bonds) so that Americans could buy Chinese goods.

If China wanted to wreak havoc, a possible super depression on the USA they have the tools to do it. Sell there bonds. The dollar would be worth little more than the paper it's printed on.

While China is an unfair trader, and does deserve targeted tariffs, or other barriers, the incompatence of sweeping tariffs by Trump shows what a danger this man is for the USA economy - and by default it will affect the entire world economy.

China has the potential to destroy the U.S, economy. If you are not brushed up on macro economics google the topic. Selling bonds.

Already they are planning to, or have banned real earth minerals.

USA is the biggest economy but it's on shaky foundations. The amount of debt, a fair bit held in the form of bonds would allow China (or even Japan) to totally wreck the dollar.

A big advantage of the USA that no other country has is that the dollar is the reserve currency. It couldn't serve that purpose if China played hard ball and sold off all, or even half of it's USD 10 year bonds.

All of this hurts everyone, but China, if willing to play really hard has the upper hand over the USA.
The huge debt, about $37 TRILLION dollars would be unsustanable for any other country, even if using a ratio of GDP to match the debt.

In other words, it's a house of cards that has worked wonderfully for the USA, and there is no reason for that to ever change.

However, Trump is playing with fire and opening the path to destroy the U.S economy.

I hope it doesn't come to that, but it is a real possibility. China has all the cards, or most of them when comparing USA to China.

Trump is a fool. He could have approached this carefully and in a targeted manner. Instead just sweeping rates, based on false data. Clearly, a lot of Americans don't realize how precarious their economic situation is - but only because Trump is doing things that would have been unthinkable.

Worse, he keeps changing his mind, that puts planning a large investment on hold. The leader of the free world doesn't understand basic economics.

There already is some loss of trust, plus countries are already doing trades sans USD intermediary - I think India , Brazil , china
Really USA citizens should learn the huge benefit of trade and having USD as world reserve.
Access to lowest rates , and ability for QE ( printing money ) with little affect on exchange rate

If USD falls - apparently has vs some currencies the US consumer and wannabe overseas tourist will suffer. Will make exports cheaper, but already protest stop buying and US corps will just use it to raise foreign prices as can't help themselves

But given 1/3 of TBonds are up for renewal this year . and Trump attack on Fed
Really interesting times
Soybeans to China never recovered from first term tariffs as less trust and more dislike . I don't want to look but probably cause more deforestation of the Amazon as Brasil takes over