Sony Interactive Entertainment (SIE) has announced an increase in the recommended retail price (RRP) of its PlayStation 5 console in select international markets mid-generation. The news, disclosed via the official PlayStation blog on Monday, follows the outcry from the console manufacturer about growing inflation and a tariff-ridden international trade environment.
Sony revealed that the price hike affected Europe, the Middle East, Africa, Australia, and New Zealand as of April 14. The company has opted to reduce the price of the detachable PS5 disc drive to reduce the blow, but the overall cost of acquiring a complete console is higher than at launch four years ago.
“With a backdrop of a challenging economic environment, including high inflation and fluctuating exchange rates, SIE has made the tough decision to raise the recommended retail price (RRP) of the PlayStation 5 console.”
Australia hit the hardest with PlayStation products
In Australia, where the PS5 originally launched in 2020 at AUD $749.95 for the disc model, the price is now a whopping AUD $829.45. The digital-only version also jumped from AUD $599.95 to AUD $749.95 in the same period.
PlayStation Console Price Changes. Source: PlayStation blog
On the UK and European markets, the PS5 without a disc drive now costs nearly 20% more than it did at launch. The price difference between the disc and digital versions has virtually disappeared.
SIE is introducing price cuts to the standalone PS5 Ultra HD Blu-ray Disc Drive to offset the cost partially. Beginning April 14, the accessory will retail at €79.99 in Europe, £69.99 in the UK, AUD $124.95 in Australia, and NZD $139.95 in New Zealand. Still, the company’s premium $1,199 PS5 Pro console remains unaffected by these changes.
When asked about the disc drive’s price cut, a Sony spokesperson replied that pricing decisions are made with regard to “various factors at the global, regional, and local levels” but declined to offer specific details.
Sony’s PS5 pricing changes come against the backdrop of an increase in PlayStation Plus subscription fees in Australia and South American countries, effective April 16. All tiers, PS Plus Essential, Extra, Premium or Deluxe (the premium version for countries who cannot stream games), will see an uptick in pricing on the 1, 3, and 12-month subscriptions.
Sony will charge $214.95 AUD for the 12-month PS Plus Premium Australian subscribers. At today’s exchange rate, that converts to roughly $133.20 USD, much lower than what US customers pay annually.
Price hikes around the gaming industry
Sony-oriented gamers are not the only ones who will feel the brunt of price increases, as Nintendo also worries the community. After announcing the highly anticipated Switch 2, the Japanese gaming giant abruptly delayed pre-orders in the United States.
Industry analysts claim newly imposed US tariffs, ranging from 80% to 90% on certain imports, are doing a number on Nintendo’s production capabilities.
According to Bloomberg, Nintendo’s partner Hosiden Corp, has shifted nearly all production to Vietnam and partly to America to sidestep the levies. PC manufacturers have adopted similar strategies, pushing products into the US before the full tariff rollout.
Despite a temporary 90-day reprieve on the most severe trade restrictions, a blanket 10% tariff remains in effect for all overseas goods. With the US accounting for 29% of Sony’s total revenue and 37% of Nintendo’s, both companies are taking significant steps to shield their bottom lines.
In Tokyo, Nintendo shares had dropped by 5.4% at the start of last week, but have climbed by 8% in the last 5 trading sessions. Sony’s stock almost had similar gains in the period, going up by 6.5% in Monday’s US pre-market session.
Former PlayStation CEO: Increase $5 on games per generation
One of the most contentious developments in the gaming community is the emergence of the $80 base game price, which appeared for Nintendo’s Mario Kart World. The increase builds upon the controversial change from $60 to $70 per game, introduced during the PS5 and Xbox Series X|S launches.
But according to Former PlayStation CEO Shawn Layden, the price is justified. Speaking on a video chat with PlayerDrive. Layden argued that, when adjusted for inflation, games today are cheaper than in past decades.
Because gamers are uncomfortable with abrupt additions to prices, he proposed a gradual $5 price hike for every console generation.
“$59.99 in 1999 is equivalent to a hundred bucks today,” he remarked, suggesting that incremental increases would have made the price hike less jarring. “People would not like it, but it would be easier to accept than seeing prices go from $70 to $80 and even $90 in one generation.”
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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