Sony has raised the price of the PlayStation 5 console due to rising inflation

Sony has raised the price of the PlayStation 5 console due to rising inflation
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This photo illustration shows the PlayStation 5 logo on a smartphone.

Mateusz Slodkowski SOUP Pictures | LightRocket via Getty Images

Sony on Thursday raised the suggested 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 increases are effective immediately, except in Japan, where they will begin in September. 15.

Sony is not raising the price of the PS5 in the US

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

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

Here 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 for disc version to £479.99 and digital model to £399.99
  • Japan: 5,000 yen increases to 54,980 yen for the disc version and 44,980 yen for the digital model
  • Demon: 400 yuan increased to 4,299 yuan for the disc version and 3,499 yuan for the digital model
  • Australia: increased by A$50 to A$799.95 for the disc version and A$649.95 for the digital model.
  • Mexico: 1,000 Mexican pesos increased to 14,999 Mexican pesos for the disc version and 12,499 Mexican pesos for the digital model
  • Canada: C$20 increased to C$649.99 for the disc version and C$519.99 for the digital model.

Sony’s price hike comes as gaming companies including Nintendo and Microsoft saw their second-quarter sales decline. the boom caused by the pandemic is starting to wear off.

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

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

Developed by Rival Xbox Microsofthas not announced any price increase yet.

Given that the PS5 has been severely limited since launch, Sony hasn’t been able to buy its latest console, and Microsoft has yet to show any signs of pricing for the Xbox Series, there’s no doubt that this price increase will be difficult. to decide,” Piers Harding-Rolls, director of research at Ampere Analysis, wrote in a note Thursday.

“However, as inflation and price increases are felt through the component supply chain, much of it denominated in US dollars, along with continued high costs in distribution, Sony has now had to pass on some of these cost increases to try and maintain hardware profitability targets.”

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

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

“While we believe that some consumers who unsuccessfully tried to buy the PS5 will be disappointed or save up to buy the console for the price increase, the increased demand for Sony’s device means that in most markets this price increase of around 10% will have a minimal impact on the console’s sales,” he said.

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

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