Sony Interactive Entertainment has confirmed a price hike for its PlayStation 5 Digital Edition in Europe. The price is going up from 449.99 euros to 499.99 euros. This change means the console’s effective pricing is now equivalent to about $569.9 in the region. Whatever the cover story, the company calls the reality they face today a “difficult economic landscape.” Like us, they are grappling with rampant inflation and volatile exchange rates.
The price of the PS5 Digital Edition just went up. Yet the SKU that includes the HD Blu-ray disc drive becomes a weird outlier by not changing at all in Europe and the United Kingdom. Sony spared the upcoming PS5 Pro, an upgraded model of the console, from any price hikes at this time.
Global Pattern of Price Increases
This recent spike continues a year-long pattern of frequent PSP price hikes by Sony. In 2022, the company announced price increases for its consoles in Japan, Australia and New Zealand, along with many others. This decision was made during the course of an exceedingly turbulent economic environment.
The suggested retail price for the PS5 in the U.K. has jumped up to £429.99. That’s an increase from its original £389.99 price tag. This reversal is only the most recent example of Sony’s larger, behind-the-scenes strategy to pivot based on market circumstances.
Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games thinks this is the best possible time for a increase. He continued, given the lack of user backlash around this kind of thing, it’s a smart tactical move.
“backdrop of a challenging economic environment, including high inflation and fluctuating exchange rates” – Sony
The PlayStation 5 is now more than four years old. Industry insiders are saying we should expect further price hikes in the coming weeks. According to Toto, American consumers can expect more PS5 price increases in the US too.
Author’s Opinion
While Sony’s price hike might seem justified due to inflation and fluctuating exchange rates, it’s clear that this pattern of constant price increases might erode consumer trust in the long run. With the PS5 nearing its fourth year, the expectation of further hikes raises questions about the long-term sustainability of this pricing strategy. Sony might be playing the short-term game, but they need to keep an eye on consumer sentiment as they navigate the economic uncertainty.
