In an unexpected move, Sony have announced that it will increase the price of its PlayStation 5 game console in nearly all regions due to global economic environment as well as high inflation rates.
The price increase is set to be approximately 10% in Europe, Middle East, and Africa (EMEA), Canada, Japan, Asia-Pacific (APAC), and Latin America (LATAM). The only market that will not see any PS5 price hikes is the U.S. The U.S. missing this price increase is logical, given the strength of the U.S. dollar over the past couple of quarters.
"While this price increase is a necessity given the current global economic environment and its impact on SIE’s business, our top priority continues to be improving the PS5 supply situation so that as many players as possible can experience everything that PS5 offers and what’s still to come," a statement by Sony reads.
From now, PlayStation 5 pricing will look as follows:
|Row 0 - Cell 0||PS5 with Ultra HD Blu-ray||PS5 Digital Edition|
|Canada||CAD $649.99||CAD $519.99|
|Australia||AUD $799.95||AUD $649.95|
|Mexico||MXN $14,999||MXN $12,499|
It is extremely uncommon for console developers to officially hike recommended prices of their consoles since their goal is to ship as many units as possible, often with slim margins. The hardware sales often capitalize on the sale of software and services (e.g., subscriptions). Another reason why platform holders are unwilling to increase prices of their devices is because they are competing not only against other consoles or PCs, but against other forms of entertainment in general, so making its entertainment platforms more expensive naturally drives at least some customers away.
In fact, just days ago Nintendo told Nikkei that it did not consider hiking the price of its Switch console because it wanted to expand its installed base and because it needed to compete against other forms of entertainment.
Yet another reason why Sony's decision to raise PS5 price comes as a surprise is because normally console developers tend to lower production costs of their hardware two years after the launch (and indeed Sony has optimized its PS5 digital edition costs). Sony has a history of releasing multiple cost-reduced PlayStation consoles, all the way back to the original PlayStation 1 which saw the removal of ports and component consolidation.
We live in a world where production of chips gets more expensive at contract makers, so it is getting harder for chip designers to lower their costs and their prices to companies like Sony. Furthermore, since the company still cannot completely meet demand for its latest platform, a price hike could more or less balance supply-demand situation.
Sony probably realized they have no software to subsidize the cost of the hardware.
Personally, I decided I didn't want a PS5 when I realized I don't feel like making space for an ad-heavy always-connected subscription-required Blu Ray player that's roughly the size of a pre-teen child.
In my home we have a Nintendo Switch, PS5, and Xbox Series S, of those three which do you think sees the most usage? Hint, it often isnt tethered to a TV :).
Before now, I would always have a gaming PC and a PS console side by side and game with different friends on each. No more. I would personally like to thank Sony for properly motivating me to spend ALL of my disposable gaming entertainment money on a new PC build a year ago this month. I never thought I'd see myself spend just $1300 on a GPU for example. Go ahead and raise the price Sony. I'm done with you.
I now have the money to play video games, but I don't have the time. When I had the time, I never had the money.
I buy a console a few years after it's out and the price drops. The amount of first-party hits a wall after a point on how much it'll sway me. How many do you need? How many first-party games will you realistically play?
And now that I've waited 2 years, I'm realizing, "Wow. All of the amazing next-gen games that take advantage of PS5's hardware... do not exist." I was extremely excited to see games that would utilize the SSD for new gameplay experiences. But so far, there has been Ratchet & Clank. That's the only exclusive that interested me at launch, and is the only one that interests me two years later. :-/ Next-gen hardware came out, but next-gen games didn't.
I'm in the same boat in the US, I've always owned a console from every generation since the Super Nintendo, but it's looking more and more likely I'll never get my hands on a PS5 or Xbox X, so I have pretty much thrown in the towel.
For the US, the Xbox Series S/X seems to be very competitive with the Playstation in terms of console sales. It's the global sales where Playstation seems to be far ahead
Someone mentioned that you can get the Xbox Series X at MSRP from Walmart.com at the moment