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 $397.3 million profit. Sony is pointing to soaring inflation and adverse currency trends as the reason for today’s change, and while technically true, fans may feel justified in suggesting the billion dollar organisation should shoulder the costs a little longer.
[source News: PS5 Price Increase Confirmed for UK, Europe, Japan, Canada, and More]
Shouldn't waste your time explaining it to people and being logical, will only fall on deaf ears. People have already decided their agenda.
Still seems unfair though. Regardless of the tax, us in the UK/Europe get shafted with the game prices still. Not a good look really!
Since 1€ is basically 1$ now Europe gets f*ed double.
I think some of it it’s the Xbox competition in the USA is a lot closer than Europe.
Surprised a little about the UK even as the competition is a bit close in the UK.
Anyway PS5 stock in the UK is good this week and right now the older price still stands.
Wonder if it will change tomorrow
@Dezzy70 Get one today if you see one then!
Murica… **** yeah! Might no longer be the land of the free… but currently the land of the less expensive 🇺🇸
A couple of interesting quotes from Piers Harding-Rolls, Ampere Analysis' research director for games (sounds like a fun job!)
“While we believe there will be disappointment for some consumers that have been trying to buy a PS5 without success, or that were saving to buy the console just in time for the price to increase, the high pent up-demand for Sony’s device means that this price increase of around 10% across most markets will have minimal impact on sales of the console,”
“However, with inflation and price increases being felt through the component supply chain, much of that priced in US dollars, alongside continued high costs in distribution, Sony has now had to pass on some of those cost increases to try and maintain its hardware profitability targets.”
“Although wide ranging, the PS5 price increases are relatively nuanced and are taking place in markets where the impact is being felt the most with an added layer of squeeze coming from the strength of the US dollar."
“Price increases will take place in at least 45 markets globally, but not in the US, due again to the strength of US dollar currency. The US is the biggest console market globally, and where Sony competes with Microsoft most closely for market share.”
I guess they have their reasons, but with the hike in the cost of living, Sony have probably just made it even harder for some people to get their hands on one.
@Futureshark He's right, it won't affect them in the short-term. The frightening reality is that PS5 could have launched $100 more than it did and they probably would have sold the exact same number of units.
Sony and Microsoft have a much more competitive battle for market share in the US. That's why the price hasn't gone up there.
The currency value is just smoke and mirrors.
Like other analysts already said, the Series S was the smarest move this Gen. Not impacted by Supply constrains and a very, very cheap entry into current Gen
I think sony should liquidate some of their other market sectors such as laptops cameras, TV's, mobiles and then just focus more on playstation.
Pretty sure playstation is the only one making a profit for them
@UltimateOtaku91 Sony Music too. Thanks to Anime and Gacha
@IonMagi While I don't disagree, no one could have predicted how things have played out these last two or three years. I'm not going to completely discredit the forward-thinking, but you have to wonder how much of that is just pure luck.
Inflation even made Nintendo cut around 20% of the packaging they use for Switch in order to maintain the current price and avoid any hike in price due to logistics.
So yeah, I think Sony could've at least tried to do something like that before gouging our wallets.
Anyway, while MS might not raise the price, expect less Series X in the wild and more Series S.
It's weird that they would not raise prices for the US. Half the people here are bootlickers who admire companies for price gouging.
@IonMagi actually forgot about their anime, I think their anime sector is bringing in the dough, but not sure about the music and film side
I expect it will eventually. Just a matter of time.
@UltimateOtaku91 Film side is probably the only problem Sony has right now. Lack of any strong franchise besides Spider-Man is hurting them a lot.
@get2sammyb The cheaper console Versions like PS4 Slim and Xbox One S have always outsold the stronger counterparts + Switch sells 110+ Million with very aged Hardware. Combined with the strong growth of digital Game sales I think it was more "smartly interpreted how consumers consume Games"
@CielloArc Hardware too, their market share for TVs, phones and Cameras is very low
Maybe i dont understand how it all works, but regardless of the strength of the dollar, Sony will still have lower margins on each unit sold if the cost of producing the PS5 is greater. And yes the US price doesnt include sales tax, but its not like Sony see any of that money.
The cost of manufacturing and parts will still be higher for Sony so the profit they make off each machine sold in America will be less than it was.
I literally know nothing about economics or business - but it still feels a little off that 45+ other markets are seeing an increase rather than it being consistent across the Board
Im probably just showcasing my ignorance here though 😅
Sometimes the best option is to go ahead and miss your targets. It may cause short term pain and a stock dip, but why continue to associate the brand with negativity?
“ Like other analysts already said, the Series S was the smarest move this Gen. Not impacted by Supply constrains and a very, very cheap entry into current Gen”
Highly debatable whether it counts as current gen given some of the DF analysis.
They sold it on “next gen gaming at 1440” (which we all see now was just a blatant lie).
I considered getting an S to compliment my PS5 but am so glad I didn’t seeing what it is capable of.
Why couldn’t they just slightly reduce the profit margins? They’re making an absolute fortune already.
@thefourfoldroot1 I mean like I said, the majority of Players dont care about Specs and the Series S still can play every current Gen Game 🤷🏼
@get2sammyb MS gave us covid…I think that’s pretty clear now. And now they’re selling a current gen console the same price as the ps4 pro…whilst forcing Sony the raise the price of its console and games so they remain in 400million profit.
What is interesting, in these soaring inflated adverse currency trending times, Sony is still eager to sell us expensive luxury controllers and VR headset add ons…you have to wonder what those will be priced at and how well they’ll actually end up selling.
Nah, imaging and sensors and financial services bring it lots of profits too.
Plus music and film of course.
So can the ps4 and the xbone pretty much, doesn’t mean they bring next gen performance, nor will they or the S keep up once games abandon last gen specs and move to unreal 5.
@thefourfoldroot1 Again, Devs have to and will make the Games playable on Series S haha. Also UE5 is optimized for Switch and Phones too so this doesnt really matter
Playable as a different version. That’s like saying the switch version of a game is the same as a series X version. They are on both platforms, but the only thing that is actually the same is the name.
Anyway, that’s all off topic I guess.
In terms of inflation and price increases - pretty normal. Could Sony have eaten the cost for longer? Sure., but not forever - they aren’t Microsoft, Google, Amazon, Tencent etc. so, if they have to increase it and get the rabid fanboy bad PR anyway, then they may as well do it sooner rather than later.
Hard to get worked up about relatively wealthy people, who are looking at buying a £450 piece of luxury electronics, having to pay £30 more ; not when people are struggling to pay their utility bills and put food on the table for their kids…
My PS5 $499.99 PS5 cost me $536.74 because of my State's tax on sales in the USA. Each State has it's own Tax rate we have to pay when purchasing goods.
I just want to say if you’re using the fact the US charges taxes on pricing as opposed to a lot of other countries, like Europe, as well as being 1:1 I’d like to point out the tax thing is also true for Canada so it just seems more like you’re going with inflation as your reason as opposed to 1:1 with Europe,
its almost like its basic economics.
@royalblues sure its luxury but i missed where luxury items were immune to inflation? other luxury like holidays/designer gear is increasing.
how do you know that sony can keep eating costs? it doesnt have a bottomless pit. it is not ms.
Some incredibly cynical thinking went into this move, but I'm actually not surprised. Their supply issues are still at a state where PS5s disappear from sale pretty quickly, and their fanbase will forgive and forget with seemingly anything. Actually, scratch that: they'll zealously defend Sony's right to hike prices and make more money.
It'd be nice if this hurt their sales momentum, but considering consoles were flowing smoothly when scalpers were selling them for dramatically more, it probably won't mean much.
But yeah, taxes lead to effective price hikes in large parts of the country. Buying a PS5 where I live would cost $548.74.
I don’t know if I agree with the sales tax theory. I think it has more to do with history in the US on consoles. It doesn’t always happen, but most generations, the higher priced console didn’t perform as well. Just going through the list of generations in my head, I remember price was a big factor for many here in the US. Playstation 5 has so much great hype, I still think they would have been fine had they raised it in the US, but it definitely would have opened the door for Microsoft and the Xbox series.
While it's never good news, people need to take a long look at the global economic situation. Corporations can't just "eat costs" forever.
That’s the reason.
They claimed the increase was because of the “global” crisis in order to sell it to people but excluded the one region that they know they need to remain competitive against Xbox in.
If we are all really in this together then we should all share equally in paying for it.
Giving favouritism to people differently based on where they live really isn’t a good look.
@Royalblues you completely missed the entire point of this article.
I think...now hear me out.... it comes down to soccer and baseball. Japan likes baseball and Sony prefers to call it soccer. So they are forcing the rest of the world to comply. This should really be commended.
I wish more people would take financial literacy courses and just generally learn more about how the global economy works.
@Kienda is it treating people differently? Ok, did you complain on Americans behalf when every game sold was 10 dollars more expensive on the states? Nope, you didn't. I didn't complain because I understood dollar values and exchange rates. Which is what this article is about. Can you refute those claims?
Price be damned—anyone have any tips on scoring a PS5 for non scalper prices? I’m on a bunch of “waiting lists.”
@AdamNovice They haven’t eaten costs at all though. Corporations are giving more and more money out in dividends while making life worse for working people.
In the USA, going all the way back to November 2020, the cost for a PS5 out the door is between $540 and $550 depending on state.
So Europe was getting a discount all this time on the PS5 since VAT there is already built in to the 500 you'd pay.
No one cared when I paid $440 for the digital PS5 lol even though to people overseas it looked like I was going to pay $399 and ONLY $399.
I get the reasoning but it's just always felt like not going up in price after launch was an unwritten rule for the industry. Just another sign that times they are a changing.
Got my nephew one with the HFW bundle current price, being delivered tomorrow 😊
@GreatAuk yup, another thing most people seem to forget is that the price before VAT/sales tax has actually been lower in Europe and actually still will be after this hike.
While this understandably doesn't matter much to the consumer (who has to pay the final taxed price), I'm seeing some people say that leaving the US price unchanged would either mean it will no longer be sold at a profit there, or that it could've been still sold at a profit elsewhere without the hike - and if the profit margin is low enough, neither might be true.
@UltimateOtaku91 sorry mate are you implying that those of us who are unhappy with this decision is being illogical? In fact it is completely illogical as a consumer to support/be fine with this in any shape or form, because the only reason they have increased the price is to maintain their profit margins and shove whatever increase in manufacturing costs down to the consumer.
as long as they keep making hundreds of millions in profits because thats the most important thing
@Kienda Actually it's the opposite of what you are saying.
All this time since the release of the PS5 the US consumer has been paying between $540 and $550 for a PS5 when taxes are included.
Every other region's taxes were already included in the announced prices in 2020 so Europe's PS5 has actually cost almost 10% lower than the USA's for the last two years.
Geez Sony! You are making yourself look like the evil villain of the 3 with all of this negative press surrounding you all as of late. This is nasty work.
Sony’s reputation is really taking a beating over this decision. And I can’t say I disagree in this instance. It feels like a lot of these big businesses are refusing to take (or even share) the hit caused by the current economic situation and are passing it onto the consumer entirely. It just means I’ll buy less from that company, or I won’t buy from them at all.
@GreatAuk @Cutmastavictory I understand that prices vary by country. There is a reason iPhones are cheaper in America than they are in Europe, for example.
However, Sony sold this to people as if it is a “global” crisis that “affects all of us” and yet we aren’t all affected the same, so yes I will take issue with that.
They can justify anything with stats and graphs but that isn’t the issue here. This is bad PR and graphs or even facts can never outpace feeling and emotion of the public.
They didn’t have to make this decision. They chose to. And the simple reason they are doing it to stay competitive in the US while they know the price hike will be more acceptable in other regions where their brand is stronger.
It’s an own goal and we should rightly speak out against the bad practices of a brand we love. Because greed has damaged it. Additionally, we the customers lose out because we pay more just to give shareholders more money. And I’m aghast that people keep defending multi-billion-dollar businessmen instead of us working class people who always get the short end of the stick.
So glad I got mine already. Haha. People will complain but still get one anyway. Even though a PS5 is a luxury item, people have a way to get what they want regardless of budget. If their mind is determined to get something, it will happen somehow whether its considered affordable or not.
Sony are in a 'difficult' position. They are likely not breaking even or even making a profit on every console sold and they need you to buy a Console to sell you games, services etc to offset whatever 'loss' they take on each.
With MS for example, their console is purely optional and they don't 'need' to sell you their own hardware to sell you games/services as they also sell those on PC and every 'cloud' compatible device. If they 'lose' more on the Console, then they may offset that by Sales of games and services on that Console (like Sony), but also gain by sales of Games/services on PC/Mobile (where they haven't lost any money on hardware).
Also, by releasing on PC on Day 1, those PC gamers aren't 'forced' to buy Hardware to play those games at a loss to Sony and may not spend enough to break even as PC is their 'main' platform. By the time Sony release on PC, they have virtually exhausted their Console consumers and putting it out on PC to basically get whatever extra they can - but those gamers aren't buying 'games/services' from Sony themselves on a regular basis to be relied on. They are far more dependent on their own Hardware and its really only those gamers that offset any hardware losses. Therefore, its more vulnerable to increased hardware costs. If they sell 50m consoles, that's the 'most' PS+ subscriptions they can get and the 'most' of each games they can sell too.
MS has a PC store, has PC/Mobile services and not reliant solely on the 'Console'. If they sell 25m consoles, they can still sell Billions of Game Pass subscriptions, more than 25m each of their games because they are available 'everywhere'. If Sony needs gamers to buy 2/3 games, and subscribe to PS+ for a year to break even, MS could offset that by getting 2 or 3 people to subscribe to Game Pass on PC/Cloud for a few months, buy a game or two on PC and not rely on that Console purchaser to 'sub' or buy games to offset the loss...
That's why I think Sony has done this. Its understandable when its the 'only' platform that Sony has to recuperate any 'losses' on their Hardware costs. If it takes a 'year' or more on average for a gamer to have spent enough to offset the loss, to become 'profitable', that's much more of a Risk. MS could be in a Similar position on Console, but their PC/Cloud consumers are instantly profitable and ease the pressure on their Console based players...
@GreatAuk you are wrong.
You paid $440 for a digital PS5 in 2020 including tax.
On 12 November 2020, the date the PS5 release the $ to £ rate was 1.3129.
That means the UK price of £359.99 was $472.63 at that time.
That means you paid more than $30 LESS than someone in Europe even after paying tax.
The price may have changed in our favour due to exchange rates, but now they are increasing our price so we are again paying more.
Supply restraints are ending and Nvidia the other day said inventories are climbing almost sounded like a glut and pricing are coming down so why now when there has been inflation all this time. why when it seems inflation is ending. Yea I know Nvidia chips are not in the PS5 but made in the same Fab. Companies typically loose money on hardware and make it up on games. The long term damage with more bad PR it was a stupid mistake. Especially in Europe where they are in a major gas problem and maybe heating in the winter. Actually make me want to sell my PS5 since I already have two other systems and a PC.
As the article points out, Xbox actually has a fighting chance against the PlayStation brand in the U.S. Hell the 360 outsold PS3 here, but even with that, I wouldn't be surprised if the price hike eventually reaches this market too.
@get2sammyb I don't think figuring out "cheap things sell well" is luck. Pretty sure that's day 1 of
business schoolrunning a lemonade stand.
I got mine about 3months after Launch for £449.99 (inc Tax) as well as a few games, extra controller etc in a Bundle that came to about £600 in total - although I saved around £10 on the price of buying everything individually.
I'm glad I did now as I wouldn't bother paying the 'new' price based on the way this generation has progressed after the last gen. I never expected games to be as expensive as Sony expects and can play the 'few' exclusives I like on my 3080ti Laptop. I'm not buying 'Sony' games at launch, nor digitally in their store, instead checking Ebay as a 'vote' with my wallet against the prices.
@UltimateOtaku91 "People have already decided their agenda."
To be fair that also includes you 😅 In the last article everyone pretty much knew your position and what you were going to write before you wrote it.
Like some others have said, never in PlayStation's history are they making more money then they are now. Not even Sony's Dominant PS2 days come even remotely close to the revenue they are bringing in Wheelbarrows.
They could have easily eaten whatever loss they are currently experiencing and still not really be affected by it, but the more these corporations make the more they want so were the ones stuck holding the L.
@Kienda you're right, they didn't have to, they chose to. I agree. But again, I said fo you have a retort for what was brought up in this article? You're coming at me from the excavation same arguement you had before you read this article.
@thefourfoldroot1 @IonMagi I'm honestly expecting at some point (like in around a few years) for Series S to essentially be the cloud model and only Series X gets native versions. If you look at this year's Xbox Showcase, there were a lot of games where the platforms listed were "Xbox consoles, PC, Cloud" rather than listing the specific Xbox consoles they were coming to. This is a result of the fact you can play Xbox games that don't come to XB1 on XB1 via xCloud.
@Kienda isn't VAT in the UK 20% for electronics? Or something like that?
Maybe that's why your 359 price was as high as it was. Sony can't offset all of the VAT just to keep numbers in parity with other countries.
Tax rates vary from place to place. If we had a 20% tax here and American would have paid $600 for the PS5, so higher than your costs again.
So I'm thinking that's why it was priced at 359 for you guys which translated to a higher overall cost when changed to dollars. They can only offset so much of your VAT.
@Kienda I see what you’re saying (although I didn’t confirm the exchange rate for two years ago, but assuming it’s correct…) but look at it from Sony’s perspective.
To continue your example:
I believe the VAT is 20%, right? So of that £360 that you paid for your PS5, £60 went to the British government. Sony only got to take back £300 of that. And if my math calculates, that equals $390 at the exchange rate you shared. So you paid Sony $10 less than I did for my PS5 (because Sony got the full $400 from me and the government got $40) Sony made more profit from me in 2020 than it did from you. I gave them $10 more for mine than you did for yours. So the US consumer was subsidizing some of the losses overseas for the last two years, in your example if all those rates are correct.
Unfortunately Sony can’t control the cut that each individual government takes.
@GreatAuk Oops… we just sumul-posted the same thought. 😄
@NEStalgia leave him alone with his delusions. He’s as sick as the others on here.
@Th3solution @GreatAuk okay, I get what you’re saying. Sony’s cut was less from the US than the UK. But that doesn’t mean that Americans paid more than Brits or Europeans.
I think this 10% talking point is being thrown out there when it isn’t accurate. It only works if you compare the dollar to pound price without exchange rates.
Again, I have to emphasise, Sony simply did this move to increase profits in several regions while they try to remain competitive in another.
Us fighting about who has been hard done by the longest is like the politicians getting different groups to fight each other to distract from them making bad decisions that affect us all.
That’s all I’m trying to say.
@colonelkilgore Always was.....apart from...healthcare......
Microsoft studied how people actually consume games by looking at the PC side of the industry.
The vast majority of Rigs people run are not state of the art. They are typically using lower end cards and CPUs. And they are satisfied for the most part. It may not play the game at optimal settings, but thanks to the scalability of most game engines today, you are getting the full experience regardless of your hardware set up.
Microsoft probably looked at that aspect and determined that there was a market for a lower spec console that focused on improving quality of life features over all out power. Which led to the Series S.
For a casual gamer, the Series S is a very compelling machine. It doesn’t match the PS5 or Series X in terms of graphical grunt, but it does share the biggest life improvement features those consoles introduced. Namely insanely reduced load times and a friendly digital only experience.
For a hardcore gamer, the Series S’s flaws are apparent. But it wasn’t aimed towards us anyway. It was aimed at the guys and gals who only play one to three games per year and in many cases only play one particular series. It’s low cost of entry is perfect for those types of gamers (who outnumber us 5 to 1 or more) where a gaming machine is just used as something to kill free time.
It’s also a great starting point for young gamers who are reliant on their parents, since a parent (especially in tough economic times) will react more positively to a 300 dollar machine over the kid asking for a 500 dollar machine.
It also has some appeal with hardcore gamers as a secondary system or as a Gamepass machine.
It covers just about every potential customer. The only people who it doesn’t serve are traditional hardcore gamers where performance is first and foremost. But the Series X exists for those customers.
It was a genius decision by Microsoft. I don’t get why the Series S gets so much hate.
Just for the purposes of being precise, @GreatAuk, the £450 that the PS5 cost in the UK, equates to around $532 dollars (at todays exchange rates). Whilst this is cheaper than the $540-$550 you quote, the difference is perhaps not as marked as you think. Plus, now with the price increase the PS5 now costs the equivalent of $568...
@Kienda Yes, it’s a fairy complex and fluid thing, considering exchange rates fluctuate, economic conditions change, and taxes are quite variable. In fact, in the US the tax rates vary by state and can even vary a lot within a given state. So they range from 6%-12%.
And to be clear, I don’t mind the fact that I may pay a little more from time to time than my friends across the pond, because other times I actually pay less and it can depend on the product or service.
And personally, I hate paying taxes, but I know they are a necessary evil to keep the community afloat. At least when you buy your PS5 it comes with a free added contribution for universal healthcare! 😄
"Sony is being absolutely slaughtered on social media" Erm what's new??? I think the Xbox(whatever it's called) is close to monthly sales of the PS5 in the USA so maybe SONY is thinking about that to? Put the price up of the PS5 in the USA & Microsoft could sell more Xboxes there. Just a thought.
@Th3solution nah, the NHS, along with State Pension, are funded by National Insurance, which comes out of earnings, VAT goes into the tax pot along with the rest of them, and pays for things like road repairs, expense fraud and paying ministers' mates contracts that they never fulfill so they'll offer those same ministers cushy board positions when they're voted out of office
Sony defense brigade are out in full force today. However, If this had been an Xbox headline, the tone of this thread would sound a whole lot different.
Regardless of the reasons, exchange rates, inflation etc. it's just another negative PR move from Sony. When the general population is facing a huge cost of living crisis, Sony upping the PS5 price to maintain their profit margins just makes them seem greedy and anti-consumer.
Let's not forget that they sold the PS3 at a massive loss initially and yet had virtually no digital revenue. With the huge digital river of money they now have, you'd think they could have avoided this.
Also, as others have pointed out, if this had been Xbox everyone on this site would have been screaming for blood.
More reasons for people to hate on jim ryan thats for sure.im in new york its all good.but the people over the 🌎 world got mike tyson punch out by dony decision.thats a fact black.word up son
I just want to say I’m sorry this is happening to my friends across the pond and in places all over the world. I was recently in the UK visiting on my holiday and was so impressed with the country and people. I know this could affect a lot of peoples decision to buy a console and be entertained, especially during these crazy times we are in, entertainment is something that can keep our days just a bit better. I am truly angry at the world economic situation we are in and how companies will continue to reek profits at the expense of the consumer. Not a good move Sony, makes me wonder if getting into this hobby was a smart move.
@OrtadragoonX dont even have to look at the PC market. Look at the Switch. The Switch Lite alone sells very well despite the fact that a lot of games run terribly on handheld-only mode. Truth is, a lot of the market will be perfectly happy playing on the cheapest market.
Hell, they don't even have to look at the Switch either. Look at last gen. They could look at XBox One S sales vs XBox One X sales, and although Sony didn't release model details, it was not hard to just look at some retail information to see that the PS4 also outsold the PS4 Pro regardless of extra power.
The Series S is going to pay off big time in a few years, when they end up able to cut the price to ridiculously low levels. I would not be shocked if we see Series S for $100 near the end of the generation.
@mrtennis1990 hats off to you , most ppl just care about themselves and u post shows u actually care about OTHER ppl , good on you
@invictus4000 "If their mind is determined to get something, it will happen somehow whether its considered affordable or not."
Where's my private jet? Should I steal it GTA-style?
Regarding the price rise; Sony can do what they want; they evidently don't care about the negative reaction; and you can hardly expect consumers to care about Sony's finances when their own is clearly limited. If Sony can still sell PS5s then good for them. Conversely, should they find that interest has dropped and by extent sales, then they can deal with it. Business is business, right? You win some, you lose some.
My advice to people who want to buy the PS5 but disagree with the increase of price in principal, is to hold-off buying; Sony will get the message eventually.
People like a low cost of entry. Especially casual gamers.
As Hardcore gamers we tend to insulate ourselves from the rest of the industry. For us, gaming is a true hobby. No different than books or model building. We are willing to pay the costs because we want the best we can get. We are willing to save for a console or PC of our choice. We are willing to invest the money on accessories. We are willing to find creative ways to get games we can’t even afford sometimes. No different than Gunpla fans in that regard.
But we have never been the majority of gamers. Casual gamers have entirely different priorities with gaming machines. For them it’s nothing more than a way to kill free time. If you only plan on playing it once or twice a week and you only buy one or two games per year, why would you spend 500 dollars on a Series X or PS5 when you can get a Series S that plays the majority of the same games at acceptable performance? Hell a casual gamer doesn’t even know what frames per second even means. So the performance aspect doesn’t even matters.
I imagine a casual gamer thinks like this.
“I’m a big football fan, and I like playing Madden. But that’s the only game I’m interested in. I could buy this PS5 over here to play Madden on. But I’m really tempted by this Series S thing. It plays the same game I want to play and it’s 200 dollars cheaper.”
@theheadofabroom Ah, I assumed that the UK sales tax / VAT being so high was because it went toward something really meaningful. Alas, government spending appears to be as irresponsible no matter where one lives. 😛
Sounds like typical Sony business. There PS5 console is high on demand, using inflation as a excuse while telling their consumers they have to eat the cost because its you who wants the console.
Paraphrasing a quote I read before, but cannot find and correctly credit:
You can't use logic and reason to change someone's mind when they used neither in the first place.
It would have been far smarter of them to phase out the standalone consoles and only sell bundles to increase revenue rather than just increase the price. Alternatively, they could just not do a price drop in the future and make up revenue that way. Being more expensive than your closest competitor is not a good move, even more so when that competitor is using its near-limitless money to buy their way to the top of the industry you depend on.
Inflation's a bitch, we've been dealing with higher prices in Canada due to this for years now. Just remember, it's business and it isn't personal. The price of YOUR dollar in YOUR country is to blame. Not Jim Ryan. Lol
In addition to the currency exchange rates the US is their largest market and is experiencing worse (I know it's bad everywhere) inflation than any other market that's considered 1st world.
@Royalblues but wouldn't you agree it's worse to raise prices on things people absolutely have to buy? which is what just about every company is doing. just hard to muster up much outrage at Sony for raising the price of a game system when I'm going broke every time I do that extravagant thing I do each week known as buying food for my family.
Each US state has a variance of sales tax from 0% (Delaware) to 10-14% (west coast), me living in PA got me for 6% which was about $30 extra.
People on here complaining is a pretty big joke. No one likes paying more for something than someone else pays. But to say that it’s negative that Sony passes it onto the consumer, is laughable. Sony should just eat it , right???😂 Anyone know anything bout business. I want them to make a profit so I can enjoy games for many many more years. They are not M$ where they can lose money on their subscription service and still be ok. Let’s all be adults, know they need and want to make money and support them in every way that we can. When they do bone headed things (which they do, but not this), we call them out.
The US have always had special treatment they've had the rewards program for ages
@UltimateOtaku91 That's a bit of a snarky comment mate. I think people understand the reasons why it could happen. I just think everyone agrees that maybe Sony shouldn't have passed the costs on to the consumer when they were happy to take a loss on PS3 with little to no digital revenue during a global cost of living crisis.
If something is selling at, what may seem like a high price to is, why would you lower the price? You'd be losing money. You only drop prices when your sells are cooling off. I don't think that is happening with the ps5. Hard to get, yes, but still selling like hotcakes. Which must sell pretty good given the saying.
Just because there's some logic to it doesn't make it more palatable. MS/Nintendo need to cut their prices overseas and seize the opportunity.
Maybe U non-Americans should tell your local currencies to git gud!! 🇺🇸
America is not a country, we are 50 countries held together by duct tape and crossed fingers.
Thank you for the detailed economic market explanation!
Japanese Playstations are made in a factory in Chiba-ken in a city called Kisarazu. I wonder why they feel the need to raise the prices of Japanese Playstations when the Japanese versions are made in Kisarazu...
It would be more convincing if they said "we simply want to charge you more" rather than saying "it is inflation" regarding the Japanese version PS5s.
Most consoles get a free game or discount 2 years into their lifespan, not a price increase.
At this point you may as well use QuadPay or Klarna to pay for your console, at least with that you could pay in four sums, once per bi-weekly instead of a one time expensive sum pay.
Your 2 cents or as Sony probably prefer your 2 dollars.
Fanboy copium as expected from this site. instead of acting like thier PR how about calling them out for ripping of any fan not from the states.
@Th3solution to be fair it used to go towards things like education, but over the past decade of Tory rule anything useful has been stripped back until it's worryingly underfunded, without the taxpayer seeing any real reduction
I'm waiting for a PS5 slim. That thing is too ugly for my living room, a redesign is required.
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