Sony raises price of PlayStation 5 console due to soaring inflation

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In this photo illustration, a PlayStation 5 logo is displayed on a smartphone.

Mateusz Slodkowski | SOPA images | LightRocket via Getty Images

Sony on Thursday raised the recommended retail price of its 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 begin on September 15.

Sony won’t raise the price of the PS5 in the US

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

The company said it has decided “on the basis of these challenging economic conditions” to increase the price of its flagship console.

Here are the increases and new prices for the PS5:

  • Europe: 50 euros ($50) increase to 549.99 euros for the disc version and 449.99 euros for the digital version
  • UK: £30 increase to £479.99 for the disc version and £399.99 for the digital model
  • Japan: increase from 5000 yen to 54,980 yen for the disc version and 44,980 yen for the digital model
  • China: increase from 400 yuan to 4,299 yuan for the disc version and 3,499 yuan for the digital model
  • Australia: AUD 50 increase to AUD 799.95 for the disc version and AUD 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: 20 Canadian dollars increases to 649.99 Canadian dollars for the disc version and 519.99 Canadian dollars for the digital model

Sony’s price hike comes amid a slump for gaming companies, including Nintendo and Microsoft, which saw revenues plummet in the second quarter as the pandemic-driven boom began to subside.

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

Sony is also struggling with lingering supply chain issues that make it difficult to make enough PS5 consoles to meet demand. There is a notable shortage of PS5s worldwide.

Rival Xbox, made by Microsoft, hasn’t announced any price increases yet.

Given that “the PS5 has been severely limited in supply since launch, with many consumers unable to purchase Sony’s latest console, and the fact that Microsoft has not yet shown any indication of increasing Xbox series prices, there is no doubt that this price increase will have been a difficult decision,” Piers Harding-Rolls, research director at Ampere Analysis, wrote in a note on Thursday.

“However, with inflation and price increases being felt through the component supply chain, much of which is priced in US dollars, alongside continued high distribution costs, Sony has now had to pass on some of those cost increases to try to increase hardware profitability. keep goals.”

Ampere Analysis estimates that Sony had sold 21 million PS5s worldwide, compared to Microsoft’s Xbox Series consoles at 13.8 million.

Harding-Rolls said he doesn’t expect this to deter gamers from buying a PlayStation 5 as demand remains strong.

“While we think some consumers who tried unsuccessfully to buy a PS5, or who saved up to buy the console just in time for the price to go up, will be disappointed, the high pent-up demand for the device from Sony means this price increase of about 10% in most markets will have minimal impact on console sales,” he said.

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

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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