PlayStation DualSense controller and PlayStation 5 console.
Jakub Porzycki | Null Photo | Getty Images
sony announced on Friday that it would raise the prices of its flagship PlayStation 5 series of games for the second time in less than a year, citing “pressures from the global economic situation.”
In the US, the PS5 disc version has jumped from $549.99 to $649.99, a $100 increase from the last time Sony raised the price of the console last year. The digital version of the device will also increase in price by $100 to $599.99. The most powerful version of Sony’s console, the PS5 Pro, will increase in price by $150 to $899.99.
The price increase will take effect from April 2nd.
“We understand that price changes will impact our community, and after careful evaluation, we have determined that this is a necessary step to continue delivering innovative, high-quality gaming experiences to players around the world,” Sony said in a blog post.
When Sony raised prices globally last year, it was against a backdrop of continued high inflation and uncertainty from U.S. tariffs.
The company is currently dealing with unprecedented memory price increases. Memory is a key component of the PS5, and prices have skyrocketed as memory manufacturers direct their inventory to huge demand from AI data centers and supply remains tight.
Sony also raised the prices of its game consoles in Japan, the UK and Europe. In the UK, the price of each PS5 model will increase by 90 pounds (about $120).
Are price increases “inevitable”?
Piers Harding-Rolls, research director for gaming at Ampere Analysis, told CNBC that rising memory prices make price increases inevitable.
“Sony likely had price protection on its parts for a period of time, but this may have ended,” Harding-Rolls said.
“With prices showing no signs of easing, Sony will likely take action to protect its meager profits on hardware. It wouldn’t be surprising if that happened.” microsoft and nintendo This was followed in the not too distant future. ”
So far, Nintendo has kept the price of its flagship game console, the Switch 2, which was released just last year, unchanged.
“This is troubling for Nintendo because they don’t want to increase the price of the Switch 2 when they’re trying to establish a new platform,” Harding-Rolls said.
During an earnings call in February, Sony executives said the company aims to soften the impact of rising memory costs by monetizing its current installed base of PS5 users and focusing on further expanding software and network services revenue.
Harding-Rawls said wars in the Middle East could put further pressure on component prices.
“A new wave of inflation is expected due to the war in the Middle East, which will further exacerbate the impact of rising component prices,” Harding-Rawls said.
