Yesterday, Sony revealed plans to raise the price of the PS5, now it seems like things are heating up as Xbox And Nintendo respond to PS5 price increase. Sony president and CEO Jim Ryan announced the price increase on the official PlayStation blog. Various markets were affected, including Europe, the United Kingdom, Japan, Canada, China, Mexico, and Australia. This led to extreme criticism from every direction, and the decision was mocked endlessly, such as the joke below:
A lot of people are criticising Sony for raising the price of the PS5, but this is actually a good move and they're saving you money
For example, I was originally going to buy a PS5 for 499 euro but now i'm not buying a PS5 at all
— Daniel Ahmad (@ZhugeEX) August 25, 2022
The main reason for implementing the price hike was stated to be inflation. In the same blog that Sony announced the PS5 price increase, they stated the following:
We’re seeing high global inflation rates, as well as adverse currency trends, impacting consumers and creating pressure on many industries. Based on these challenging economic conditions, SIE has made the difficult decision to increase the recommended retail price (RRP) of PlayStation 5 in select markets.
The price increase varies in all the regions mentioned, the only region not affected is the United States. It generally works out to a price increase of around $50 for both digital and disc models. Common sense would say that global inflation isn’t just affecting Sony and PlayStation, it’s affecting everyone, so it makes complete sense other companies are following Sony’s lead. Except they’re not.
The only hardware we’ve seen increase its price for are the Oculus Quest headsets. But Nintendo has previously gone on record and stated that it has no plans to raise Switch prices, and now, when asked about Sony’s decision by Windows Central, Microsoft gave a clear answer about this, and why Xbox players don’t need to worry anytime soon.
We are constantly evaluating our business to offer our fans great gaming options. Our Xbox Series S suggested retail price remains at $299 (£250, €300) the Xbox Series X is $499 (£450, €500).
In a similar vein, Nintendo responded to Sony’s move as well. In a statement by Nintendo, they state the following:
While we cannot comment on pricing strategies, we currently do not have any plans to change the price of our hardware due to inflation or increased procurement costs in each country. We will determine our future pricing strategies through careful and continued deliberations. While the final price to consumers is always determined by retailers, as Mr. Furukawa stated, Nintendo has no plans to increase the trade price of its hardware.
It is a weird time for everyone, consumers and companies alike, but it also doesn’t seem completely out of character for Sony, who’s also tried to shamelessly increase the price of games from $60 to $70 because they just thought they could. Of course, they stated similar reasons about the game’s being “costly,” but with a $5,000,000,000 lawsuit on their tail, we’ll see how it plays out over time.