Since the Playstation 5 launched in 2020, Sony has struggled to keep up with fans’ desire for the console. Just like the Xbox Series X and Nintendo Switch, the latest PlayStation has been flying off the shelves worldwide and doesn’t look to be slowing down anytime soon. With demand staying high and global inflation on the rise, Sony announced a price increase for the PS5, which has left many gamers discouraged.
Launched in the middle of the COVID-19 pandemic, there was a perfect storm of demand that Sony is still trying to meet. Many people were stuck at home, had extra money to spend, and turned to video games as a way to pass time and connect with friends, which allowed Sony to make the PS5 one of the most expensive consoles at launch. The PS5 had a hefty price tag from the start, and now that will be increasing in almost every major market outside the United States. While fans in the States can rest easy for now, Sony will likely be raising the PlayStation 5’s price in the US shortly.
PS5 Price Increase
In a post on the official PlayStation Blog, Sony Interactive Entertainment CEO Jim Ryan revealed that the price of a PS5 will climb in Canada, Mexico, Europe, the U.K., Australia, China, and Japan. The increase will affect both the standard and digital editions of Sony’s signature console and will cost gamers the equivalent of $50 USD above its previous price.
Typically, as consoles age, their value decreases. However, the latest gaming systems have been an exception to the rule. Demand has cooled slightly, but many gamers are still struggling to obtain a PS5 or Xbox Series X. Price increases for consoles are not unheard of, but one taking place this far removed from the initial launch is an interesting strategy for Sony. While this could just be standard supply and demand issues, the PlayStation 5 resale market remains extremely competitive, and it looks like Sony is trying to grab a piece of that for itself.
Sony blamed the price increases on global inflation and high demand for the parts required to make a powerful console. To be fair, the chip shortage has affected tech companies worldwide, slowing down the production of everything from cell phones to vehicles. Microsoft and Nintendo have faced similar issues with their consoles, but both announced that the price of the Xbox Series X/S, Nintendo Switch, and Switch Lite will not change. Sony doesn’t have to raise the price, but it is taking advantage of the current global economic situation to do so.
Fallout for the PS5 in the US
While the change has avoided the United States for now, the international market is surely a sign of what’s to come. America’s inflation rates have risen at a similar rate as other countries, and it is not immune to any global market shifts. In reality, Sony is most likely testing the waters to see if its sales are affected before launching a price change in America, its biggest market. If the demand remains high internationally, an escalation in the United States will certainly follow.
With the price increase still new, the impact on Sony’s console sales remains to be seen. A $50 increase on a $500 console isn’t that significant, but in a time of unprecedented inflation, many people around the world are working with tighter budgets. Factor in the high prices of gaming accessories and next-gen editions of popular titles, and it’s easy to see why a small increase can make a big difference. It’s never been more expensive to be a console gamer, and prices aren’t going down any time soon.
