PS5 gets a price hike – at a time when few can afford it

Sony has increased the price of the PS5 in several regions, at a time when soaring inflation has already made consumers feel the pinch.

The retail price of both the PS5 and PS5 Digital Edition is increasing in the UK, Australia, Europe, and other markets. In a blog post, Sony said the new prices are effective immediately, although the console won’t see a price bump in the US.

These are the new PS5 prices:

• UK
  • PS5 – £479.99 (a £30 increase from £449.99)
  • PS5 Digital Edition – £389.99 (a £30 increase from £359.99)
• Australia
  • PS5 – AU$799.95 (a AU$50 increase from AU$749.95)
  • PS5 Digital Edition – AU$649.95 (a AU$50 increase from AU$599.95
• Europe:
  • PS5 – €549.99 (previously €499.99)
  • PS5 Digital Edition – €449.99 (previously €399.99)
• Canada:
  • PS5 – CA$649.99 (previously $629.99)
  • PS5 Digital Edition – CA$519.99 (previously $499.99)
• Japan (effective Sept. 15, 2022):
  • PS5 – ¥60,478 yen (previously ¥49,980 yen)
  • PS5 Digital Edition – ¥49,478 yen (previously ¥39,980 yen)
• China:
  • PS5 – ¥4,299 yuan (previously ¥3,899 yuan)
  • PS5 Digital Edition – ¥3,499 yuan (previously ¥3,099 yuan)
• Mexico:
  • PS5 – MXN $14,999 (previously MXN $13,999)
  • PS5 Digital Edition – MXN $12,499 (previously MXN $11,499)

Bad timing

Sony president and CEO Jim Ryan said the price increase has been made in response to inflation. 

“We’re seeing high global inflation rates, as well as adverse currency trends, impacting consumers and creating pressure on many industries,” Ryan said. “Based on these challenging economic conditions, [Sony] has made the difficult decision to increase the recommended retail price (RRP) of PlayStation 5 in select markets.”

He also acknowledged the ongoing PS5 stock shortages, with players still finding it difficult to source the console in retail stores. Sony will be taking steps to improve PS5 supply, although hasn’t outlined exactly what that will involve.

“While this price increase is a necessity given the current global economic environment and its impact on [Sony’s] business, our top priority continues to be improving the PS5 supply situation so that as many players as possible can experience everything that PS5 offers and what’s still to come,” said Ryan.

The price hike couldn’t come at a worse time, as inflation rates across the world rise. With prices rising, consumers are finding their money doesn’t stretch as far as it used to. In the UK, that’s only worsened by a cost of living crisis.

This PS5 price increase could be the final push that tips the console out of the reach of many would-be PlayStation players. It’s also the latest example of a multinational tech corporation shifting the burden of rising global prices onto consumers. Last month, Meta bumped up the price of the Oculus Quest 2 by $100 / £100 / AU$150 in response to rising manufacturing costs. Before that, Amazon increased the annual fee of a UK Amazon Prime subscription by 20%, again pointing to inflation and rising operating costs.

Microsoft, meanwhile, hasn’t indicated any plans to raise the price of the Xbox Series X|S. While its flagship console has also experienced stock shortages, the cheaper Xbox Series S has been easier to source and has even gone on sale multiple times. Its weaker chipset makes the system cheaper and simpler to manufacture, possibly protecting it from an immediate price increase.

If that proves true, the digital Xbox console will look more attractive than ever. Factor in Xbox Game Pass, alongside the trick that lets you subscribe at a bargain price, and Microsoft's secondary new-gen system continues to be great value for money next to Sony's offerings.

Earlier this month, Nintendo said it doesn't currently plan to raise the price of the Nintendo Switch. President Shuntaro Furukawa told Nikkei it wanted to “avoid pricing people out”, despite sales of the handheld console slumping in recent months.

Current PS5 owners will be pleased they picked up Sony’s system early, but might be in for a shock when the cost of the recently revealed PS5 pro controller is revealed. After this price hike, don't expect the new controller to be cheap.

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