PS5 PlayStation 5 Sony Price 1

Sony is being absolutely slaughtered on social media for increasing the price of the PS5 outside of the United States. Many are understandably frustrated that the firm appears to be gouging consumers across Europe, Australia, and its native Japan. While that criticism is founded, it’s also important to look at the facts.

The US dollar is in an unexpectedly strong position against currencies like the Euro and Japanese Yen. It means that, on current exchange rates, purchasing a PS5 at its launch price point of ¥49,980 converts to around ~$366.44. Similarly, the European launch price of €499.99 equates to about ~$498.71. You might rightly point out that this puts the European and US price points in line, but it’s worth remembering that tax is excluded in America and needs to be added afterwards.

It’s clear that Sony is looking to maintain profitability on its hardware, which already operates on razor-thin margins. Obviously, there’s a discussion to be had about whether the platform holder should be passing costs onto consumers, but the reality is that the system is still somewhat scarce. Ultimately, it probably feels like it’s going to sell through its inventory regardless.

Of course, increased competition will also have played a part in the platform holder’s decision not to adjust the price in the United States. PlayStation is a notoriously dominant brand in most of Europe, and doesn’t experience the same kind of challenge from the likes of Xbox as it does in America.

Ultimately, it’s a bummer and bad news. Operating income for the PlayStation division was down 37 per cent year-over-year in the firm’s latest financial report, but it still turned a tidy $397.3 million profit. Sony is pointing to soaring inflation and adverse currency trends as the reason for today’s change, and while technically true, fans may feel justified in suggesting the billion dollar organisation should shoulder the costs a little longer.

[source News: PS5 Price Increase Confirmed for UK, Europe, Japan, Canada, and More]