Sony is raising the price of the PlayStation 5 console due to skyrocketing inflation

Sony is raising the price of the PlayStation 5 console due to skyrocketing inflation
Written by boustamohamed31

In this photo illustration, the PlayStation 5 logo is seen on a smartphone.

Mateusz Slodkovski SOPA images | LightRocket via Getty Images

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

The Japanese gaming giant said the price hikes are effective immediately, except in Japan, where they will begin in September. 15.

Sony isn’t raising the price of the PS5 in the US

“The global economic environment is a challenge that many of you around the world are undoubtedly experiencing,” Sony said in a blog post. “We are seeing high levels of global inflation as well as adverse currency trends impacting consumers and putting pressure on many industries.”

The company said that “based on these challenging economic conditions” it decided to raise the price of its flagship console.

These are the increases and new prices for the PS5:

  • Europe: €50 ($50) increase to €549.99 for the disc version and €449.99 for the digital version
  • Great Britain: £30 increase to £479.99 for the disc version and £399.99 for the digital model
  • Japan: ¥5,000 increase to ¥54,980 for the disc version and ¥44,980 for the digital model
  • China: 400 yuan increases to 4299 yuan for the disc version and 3499 yuan for the digital model
  • Australia: AU$50 increases to AU$799.95 for the disc version and AU$649.95 for the digital model
  • Mexico: 1000 Mexican pesos increased to 14,999 Mexican pesos for the disc version and 12,499 Mexican pesos for the digital model
  • Canada: C$20 increases to C$649.99 for the disc version and C$519.99 for the digital model

Sony’s price hike comes amid a slump for gaming companies including Nintendo and Microsoft, whose sales fell in the second quarter as the pandemic-induced boom is beginning to wane.

Sales at Sony’s gaming division fell 2% year-on-year in the June quarter, while operating profit plunged nearly 37%. The Japanese giant also cut its gaming division’s full-year profit forecast.

Sony is also struggling with ongoing supply chain issues that are making it difficult to produce enough PS5 consoles to meet demand. There is a noticeable shortage of PS5s worldwide.

An Xbox rival that was made by Microsofthas not yet announced a price increase.

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

“However, with inflation and price increases being felt across the component supply chain, much of which is denominated in US dollars, along with continued high distribution costs, Sony has now had to pass on some of these cost increases , to try to maintain the profitability of its hardware goals.”

Ampere Analysis estimates that Sony has sold 21 million PS5s worldwide, compared to Microsoft’s Xbox Series consoles with 13.8 million.

Harding-Rolls said he doesn’t expect this to put off gamers looking to buy the PlayStation 5, as demand remains high.

“While we believe there will be disappointment for some consumers who have been trying to buy a PS5 without success or have been saving up to buy the console just in time for the price to rise, high pent-up demand for Sony’s device means that this A price increase of around 10% in most markets will have minimal impact on console sales,” he said.

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

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