The PlayStation 5 came out in late 2020. Two years later, you'd expect it to be less expensive now. But, as it turns out, the PS5 is curbing the long-standing trend of price cuts. Instead, it will get a hefty price hike going forward - effective immediately.
Here's the full list of all the regions affected by the PS5 price increase and by how much:
- Europe: 549.99 euros (disc version) and 449.99 euros (digital version)
- UK: £479.99 (disc version) and £399.99 (digital version)
- Japan: 54,980 yen (disc version) and 44,980 yen (digital version)
- China: 4,299 yuan (disc version) and 3,499 yuan (digital version)
- Australia: 799.95 Australian dollars (disc version) and 649.95 Australian dollars (digital version)
- Mexico: 14,999 Mexican pesos (disc version) and 12,499 Mexican pesos (digital version)
- Canada: 649.99 Canadian dollars (disc version) and 519.99 Canadian dollars (digital version)
Sony confirmed the price hike in an official blog post, attributing the move to "challenging economic conditions." Surprisingly enough, the US market is safe from the PS5 price hike.
All things considered, the move to make the PS5 around 10% more expensive than before isn't totally unexpected, even if it's unprecedented. The fact is that Sony has already alluded to selling the PS5 at a higher price earlier this year after reporting a slight financial decline in Q1.
Despite the unfortunate news, we don't see it affecting the demand for the PS5. Sony is still hard-pressed to sell enough PS5 units to meet the market. Even though the PS5 hasn't outsold the Xbox Series S/X as much as the PS4 did to the Xbox One, it all feels like Sony is only a supply chain solution away from doing the same thing again.
If nothing else, we're surprised that the PS5 is still selling just as well as it does. You have to keep in mind that it launched during a pandemic with a worldwide chip shortage while facing an inflation crisis.
Ultimately, we're curious to see how Microsoft responds to Sony's latest announcement. It's worth noting that one of the main reasons why the Xbox 360 gained so much traction was its value - it sold at $299 at launch, nearly half the $499 sticker price for the PS3. Microsoft could use this opportunity to drive its "value" offering more by positioning the Xbox Series X as the cheaper and better console. Not to mention, the Game Pass continues to be solid with rumors of Ubisoft+ coming soon.