It's no secret that, even nearly two years after launch, PS5 demand far outweighs the supply. Part of this is due to a semiconductor shortage, making the parts needed to manufacture PS5s hard to come by. Many analysts believe that the semiconductor shortage will last another year, if not more, on top of that.
This semiconductor shortage played a role in Sony raising the Japanese prices on a variety of products, including certain cameras, Blu-ray players, headphones, and more. Alongside the semiconductor shortage, there were reportedly other factors like the cost of raw materials, manufacturing, and distribution cost increases. It's hard not to hear this and wonder if Sony's PS5 console was next to get a price increase, and during its first-quarter earnings call, Sony was asked about this specifically.
The PS5 faces similar economic pressures compare to the aforementioned products, and so Sony executive deputy president and chief financial officer Hiroki Totoki was asked if the PS5 price point could be increased due to similar issues. As transcribed by VGC, Totoki stated "about a potential price increase for the PS5, at this point in time there is nothing specific I can share with you about prices." Although this amounts to a "no comment," this doesn't mean there isn't reason to be concerned.
When it comes to profits in the gaming industry, hardware holds the slimmest margins. Consoles are often sold at cost, if not at a loss, with companies like Sony instead making money through the sale of games and related content. PS5 sales are important because they lead to profit, not because the sale thereof is profitable. And beyond the limitations of the semiconductor shortage, analysts like Forrester's Glenn O'Donnell (as reported by VGC) believes that factors like the Ukraine war, high demand, energy prices, and so on could lead to an increased cost of chips by about 10-15% in the year ahead, impacting PCs, vehicles, toys, and other electronics. In other words, the PS5 could be directly impacted by this, and that could potentially result in a price increase.
Again, it should be noted that Sony does not say PS5 price increases are coming, nor does it deny the possibility. For now, the best thing fans can do is wait and see if anything does come of this. It's always hard to say which way the industry will go, but given the reaction to Meta increasing the price of its Quest 2 headsets, it seems safe to say raising the price on a hard-to-get product would not be a popular move, however understandable it may be.
Source: VGC
