sony is hiking The price of its PlayStation 5 game console in markets including Africa, Europe, Japan and the UK after economic pressures including rising interest rates.
Sony said it is raising the price of the disc drive-equipped version of the console from €550 earlier in Europe to €500 in Europe, with a similar hike in Japan.
The Japanese entertainment conglomerate said there would be no price hike in the US, where it is locked in a battle with Microsoft’s Xbox, which is aggressively expanding its game subscription service.
Price hikes as Sony’s game business squeezed by supply-chain hassles
“We are seeing high global inflation rates, as well as adverse currency trends, impacting consumers and straining multiple industries,” Sony Interactive Entertainment CEO Jim Ryan wrote in a blog post.
The price hike comes as Sony’s game business has been squeezed by supply-chain shocks in hardware shortages, with the group aiming to boost PS5 production for the year-end shopping season.
While price increases are “a necessity given the current global economic environment and its impact on SIE’s business, our top priority continues to be to improve the PS5 supply situation”, Ryan wrote.
Sony is targeting to sell 18 million units of the Hit device in the current fiscal after selling 11.5 million units in the year ended March.
Ampere Analysis analyst Pierce Harding-Rolls wrote, “While over a broad range, the PS5 price hike is relatively subtle and is occurring in markets where the impact is felt the most, with an additional layer of squeeze coming from the strength of the US dollar.” being done.” In a blog post.
“Microsoft will leverage Sony’s growth to further its ‘value’ message,” Harding-Rolls said. , Sam Nusi, (c) 2022 Reuters