The PlayStation 5 is getting more expensive – and significantly so. On August 25, Sony announced that it would increase its RRP by as much as 50 euros. Will this PS5 price increase affect other consoles like the Xbox and Nintendo Switch?
At the moment reports of rising prices are piling up; also or especially in the technology sector. The current events and, as before, the effects of the corona pandemic are to blame for this. PlayStation manufacturer Sony uses these points to justify its decision to implement a price increase for the PS5 with immediate effect. Accordingly, the price of the console will increase by a whopping 50 euros in selected markets, including Germany. Now many users of other consoles are worried that this increase in price could affect other manufacturers.
Sony announces price increase for PS5
About his PlayStation Blog Sony announced that the PS5 price will increase “due to the global economic environment, including high inflation rates”. The statement comes from Jim Ryan, President and CEO of Sony Interactive Entertainment (SIE), personally. This is intended to absorb the increasing costs for the manufacturer and respond to the “challenging economic conditions”.
The following prices apply immediately or in Japan from September 15, 2022 for the console with and without a disc drive:
- Europe: €549.99 / €449.99
- UK: £479.99 / £389.99
- Japan (effective Sept. 15, 2022): 60,478 yen / 49,478 yen (including tax)
- China: 4299 yuan / 3499 yuan
- Australia: AU$799.95 / AU$649.95
- Mexico: 14,999 MXD / 12,499 MXD
- Canada: CAD649.99 / CAD519.99
In Germany, this corresponds to a percentage price increase of 10 percent for the PS5 version with a drive and 12.5 percent for the Digital Edition without a drive. Both models are each 50 euros more expensive than before. Of the major markets, only the USA is unaffected; a circumstance that annoys many users.
The reason can only be guessed at, but it is likely to be primarily related to the strong competition. In contrast to Europe, for example, Microsoft is much more strongly represented in the USA as a domestic manufacturer. Accordingly, a price increase for the PS5 can have a more negative impact on sales. In any case, this argument is also supported by the fact that in Japan, the price has even risen by the equivalent of 70 euros and thus by more than 20 percent – despite comparatively low inflation rates.
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Will Xbox and Nintendo Switch soon follow suit?
Speaking of Microsoft: Many gamers now fear that other manufacturers could follow suit in terms of price increases. As a rule, the companies orient themselves towards one another. At least for users of the Xbox from Microsoft, the all-clear is probably the first time. Opposite to Windows Central the manufacturer issued a statement that there is definitely no price increase planned for the PS5 at the moment.
The situation is similar with the Switch from Nintendo. In general, it has to be said that this flexible handheld console competes with the PlayStation on a different level; Microsoft is definitely following the more similar strategy here. Nonetheless, the Nintendo Switch is a serious competitor that’s also based in the same country as Sony. Just over a week ago, Nintendo boss Shuntaro Furukawa dem Magazine Nikkei given an interview. The company president made it clear that the increased costs of production and transport were definitely not to be offset by higher hardware prices. The company has now reiterated this statement kotaku.
Of course, these are not final guarantees for constant prices and a certain increase in price over time or with new products is also normal. But it should give gamers hope that the PS5 price increase has no further impact. Companies like Starlink have even announced that they want to relieve users with slightly lower prices as prices are rising everywhere.