The PS5's previously affordable price has been a major factor in its strong sales. It offers the power to run current games with ray tracing at a price of €400 for the All Digital model, meaning all your purchases will be digital games, and €500 for the model with a physical disc drive. These are relatively popular prices, but Sony has announced a €50 price increase for the PS5, effective immediately.
Through an official announcement, Sony has announced the new official sale price in PS5 stores. That is that from now on the PlayStation 5 are sold at 450 euros and 550 euros in their digital models and with a disc reader, respectively. It should be noted that this change does not apply to the North American market.
The PS5 is more expensive from today
The reasons Sony has given for the PS5 price increase worldwide are the same ones that have driven price hikes for their other products: high raw material costs , electricity, and transportation. As expected, many users have criticized this decision, as it's one of the rare instances of a console's price being increased mid-generation, since prices typically drop as soon as the cost of components decreases.
But the current situation, with inflation and the increased difficulty in acquiring components due to the pandemic, has made it challenging to even maintain console prices . Are many console users now considering switching to PC gaming ? Regarding the potential impact of this price increase, Daniel Ahmad of Niko Partners explained the reasons and possible effects on his Twitter account.
Sony says the blame lies with high global inflation rates and adverse currency trends. Manufacturing and distribution costs have also risen across the board, although component availability is starting to improve. No short-term impact is expected, as demand is not yet being met. Sony raised prices on some electronics earlier this year, and Meta notably increased the price of its Quest 2 headset by $100 this month. The PS5 Digital Edition has always been sold at a loss. The standard edition was selling at a profit per unit earlier this year. Sony wants to maintain stable hardware profitability, is passing on the increased costs to consumers, and hopes that strong demand for the console will allow it to meet its fiscal year targets. The strong dollar means there is no need to raise prices in the US, its largest market, which accounts for more than 30% of units sold. Xbox is less likely to raise its price, but it cannot be entirely ruled out. The majority of Xbox sales are still in the US. That said, the Xbox Series S remains Microsoft's best move, offering a cheaper entry into next-gen gaming compared to Sony.
Daniel Ahmad, Analyst at Niko Partners
