Bad news for gamers as Sony hikes price of its PlayStation 5 console due to inflation
Key points related to PS5 price hike:
- Sony has hiked the price of its PlayStation 5 games console across multiple international markets
- Sony stated that the global economic environment such as high inflation is the main reason for the price hike
- Customers in the U.S. do not have to worry as Sony is not increasing the price of the PS5 in the United States
Here is some bitter news for everyone who was looking to purchase the PlayStation 5.
Sony, one of the leading tech giants in the world has announced that it is increasing the recommended retail price of the PlayStation 5 in multiple international markets. The company has explained the reason behind the price hike, citing high inflation rates.
According to the Japanese firm, the price hikes are effective immediately except in Japan. The prices of PlayStation 5 in Japan will increase from September 15.
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Why is Sony increasing the price of the PS5?
Sony’s blog post stated that like other firms, it has also been hit by the hostile global economic environment. The significantly high inflation rates combined with volatile currency trends have impacted consumer behavior, adding pressure on many industrial sectors.
The blog said that these economic conditions have compelled the company to raise the prices of its flagship product. Sony’s price rise coincides with a downturn for gaming firms like Nintendo and Microsoft, whose revenues dipped in the second quarter as the pandemic-induced surge faded.
Sales at Sony’s gaming division fell 2% year-over-year while operating profit fell by over 37% in the June quarter. The Japanese tech heavyweight has also reduced its gaming division’s full-year profit prediction.
It is challenging for Sony to produce enough PS5 systems to fulfill demand due to ongoing supply chain difficulties. There has been a noticeable shortage of PS5 consoles worldwide.
Tough decision for Sony as Microsoft refuses to budge
At the time this article is being written, we are unaware of any price hikes made by Sony’s rival, Microsoft.
Given that there has been a grave shortage of PS5 since the launch, many consumers could not buy Sony’s latest console. Besides, the fact that Microsoft has not yet shown any sign of increasing its Xbox Series pricing, there is no doubt that this price hike was not an easy decision to make.
According to Ampere Analysis, Sony has sold around 21 million PS5 consoles worldwide compared to Microsoft’s Xbox Series console at 13.8 million.
New PS5 prices and hikes
- Europe: 50 euro hike (disc version will now cost 549.99 euros and the digital version will cost 449.99 euros)
- UK: £30 hike (disc version will now cost £479.99 and the digital version will cost £399.99)
- Japan: 5,000 yen hike (disc version will now cost 54, 980 and the digital version will cost 44,980)
- China: 400 yuan hike (disc version will now cost 4,299 and the digital version will cost 44,980)
- Australia: 50 AUD hike (disc version will now cost 799.95 AUD and the digital version will cost 649.95 AUD)
Tell us what you think about Sony’s decision to hike the prices of its PS5 console by commenting below.
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