Sony raises PlayStation 5 prices outside the US

nanoguy

Posts: 1,243   +24
Staff member
What just happened? Price increases for materials and components, not to mention distribution, have hit the tech supply chain harder than two years of lockdowns and pent-up demand. Like many other companies, Sony is now passing the additional costs down to consumers as it scrambles to maintain its profitability targets.

Sony is raising the retail price of its PlayStation 5 console in several regions. The company announced the move earlier today, citing a difficult global economic environment and soaring inflation. While the tech giant is increasing PlayStation 5 prices across Europe, Africa, the Middle East, Latin America, and even North America, though the price hike won't affect the United States.

The price hikes range from $20 to $80 and are effective immediately, except for Japan, where the change won't hit consumers until September 15.

Market PS5 Standard Edition (old price) PS5 Standard Edition (new price) PS5 Digital Edition (old price) PS5 Digital Edition (new price)
Europe €499.99 €549.99 €399.99 €449.99
UK £449.99 £479.99 £359.99 £389.99

Canada

CAD $629.99 CAD $649.99 CAD $499.99 CAD $519.99
Australia AUD $749.95 AUD $799.95 AUD $599.95 AUD $649.95
Mexico MXN $13,999 MXN $14,999 MXN $11,499 MXN $12,499
Japan ¥49,980 ¥60,478 ¥39,980 ¥49,478
China ¥3,899 ¥4,299 ¥3,099 ¥3,499

"The global economic environment is a challenge that many of you around the world are no doubt experiencing," said Jim Ryan, President and CEO of Sony Interactive Entertainment. "We're seeing high global inflation rates, as well as adverse currency trends, impacting consumers and creating pressure on many industries."

Ryan explains that based on these mounting pressures, Sony didn't have a choice but to raise prices. This may be especially true for consoles, which usually sell at a loss for months or even years after launch. Console manufacturers offset those losses by selling accessories, games, subscriptions, and even older generation console models.

A little over a year ago Sony started selling the standard edition of the PlayStation 5 at a profit, while the Digital Edition was still selling at a loss. Meanwhile, in the past three years (March 2019 - March 2022), Sony has sold an estimated 20 million PlayStation 4 consoles which are based on older technology and are very cost efficient to make.

Fortunately for Sony, demand for its consoles has yet to slow down while the chip shortage is gradually coming to an end. The company says it's committed to improving the PlayStation 5 supply situation, and cooling demand for a variety of silicon such as graphics DRAM and NAND chips should help remove a few pinch points in the supply chain.

Microsoft has yet to announce a similar move for its Xbox Series consoles and there is no hint yet that Nintendo would like to follow with a price hike of the Switch console either, despite a significant slowdown in both hardware and software sales.

Earlier this month, Nintendo president Shuntaro Furukawa told Nikkei the company doesn't want to price people out of its best-selling console ever, as it would kill momentum for the overall business.

It's possible Sony's decision will help its rivals in the coming months, but we'll have to wait and see. Consumer spending in the video game industry was down 13 percent last quarter, but the PlayStation 5 generated the most money.

Over the past few months, other tech companies including Tesla, Intel, Meta, and several laptop makers have also announced price increases for their most popular products, some of which are already in effect.

Masthead credit: Kerde Severin

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Xallisto

Posts: 161   +179
"The global economic environment is a challenge that many of you around the world are no doubt experiencing,"

The parts that's missing

"but as a multi national corporation we are in a position to pile that on you even harder."

"F*** you our profits are more important"
 

Vulcanproject

Posts: 1,577   +2,916
I'm not sure I remember a time where a major console actually went up in price across vast swathes of regional markets nearly two years after it arrived. It is unprecedented.

Even machines that were selling very well and did not really need a price cut usually had $50 taken off them at the two year point, plus had the usual bundling worldwide that increased overall value. Ones that needed sales stimulus typically enjoyed more off the top.

Looking at the list there quite incredibly it is Japan facing the biggest increase on PS5, over 20 percent! Perhaps the shoe is on the other foot for PC gaming for the near future. Desktop sales crashing, SSD and GPU prices dropping like a stone, the latter half of this year is the time to build.
 

terzaerian

Posts: 1,517   +2,259
1*es0U2cDVtOnO_XLOVafbyA.jpeg
 

Vulcanproject

Posts: 1,577   +2,916
What make this even worse is the exclusive games for PS5 are so lacking/lacklustre - just stick with a PS4 you are missing almost nothing. It seems this console generation is just endless unimaginiative sequels and remakes charged at crazy prices.

I find that there are some good games and older PS4 titles I didn't properly play with sweet upgrades that justified a PS5 to me. Saying that, the current and near future global economic outlook leads me to suspect we're heading for another extended console generation cycle.

Much how PS3 and Xbox 360 hung around a long while due to the 2008 financial crisis. Xbox 360 hit eight years old before it was replaced. Very little appetite to produce replacement machines after five or six years like was previously the case for several generations. The spectre of 2008 also led to rather more budget unambitious hardware in 2013 that eventually emerged.

At first I thought Microsoft's two pronged strategy would not work, the cheaper Series S and the X. Now I think they may have just lucked out. Totally unforeseen circumstances have led us to this reality where people are not going to be hungry for another round of new $500 consoles anytime soon. If the situation is not considerably improved in 12 months then I question whether we'll even see mid life refresh machines. There is just no headroom in the product stack for them and no demand.
 

ZackL04

Posts: 870   +674
This is bogus seeing how cost of materials is coming down…

Lumber, cooper, aluminum…

They are just doing this to makeup for losses over the last 2 years. This has nothing to do with current climate. Microsoft and Nintendo are just eating it, as you are supposed to when you sell hardware in its first few years.

Maybe try a redesign that costs less to manufacture, but keep the price the same. That giant white ugly thing doesn't HAVE to be that large.
 

Johnnyblaze1957

Posts: 59   +12
I play mainly on Xbox but picked up a PS5 first week of this month from a store in Ballarat in Victoria with the horizon game and it is a great upgrade just like the series X is but I just can't see how this price increase is justified.
 

Xallisto

Posts: 161   +179
When you sell your home for less than the market price, or when you inform your employer you'll happily work for less than the going rate, then you can complain about Sony's desire to maximize their own profits.
As a matter of fact I do quote my services below the going rate.

Guess that means I'm good to slag off Sony.