# Sony hikes PS5 price on economic pressures, rising rates
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Sony Raises PlayStation 5 Price in Europe, Japan, and
Meta Description: Sony announces a price hike for PS5 consoles in Europe and Japan due to economic pressures, with no increase in the US. Stay updated with Reuters.
URL: https://financedigest.com/sony-hikes-ps5-price-on-economic-pressures-rising-rateshtml

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By Sam Nussey

TOKYO (Reuters) -Sony Group Corp said on Thursday it was hiking the price of its PlayStation 5 games console in markets including Europe, Japan and Britain following economic pressures including rising interest rates.

Sony said it is raising the price of the disk drive equipped version of the console to 549.99 euros ($550.81) from 499.99 euros previously in Europe with a similar hike in Japan.

The Japanese entertainment conglomerate said there would be no [price increase](https://www.financedigest.com/syngenta-4q-profit-falls-as-raw-material-prices-increase.html "Syngenta 4Q profit falls as raw material prices increase") in the United States, where it is locked in battle with Microsoft Corp’s Xbox, which is aggressively expanding its games subscription service.

We’re seeing high global [inflation rates](https://www.financedigest.com/hotel-investors-should-they-be-worried-about-a-potential-economic-pause-delving-into-inflation-interest-rates-recession-etc.html "‘Hotel Investors – should they be worried about a potential economic pause?’ delving into inflation, interest rates, recession etc"), as well as adverse currency trends, impacting consumers and creating pressure on many industries,” Sony Interactive Entertainment Chief Executive Jim Ryan wrote in a blog post.

The price [hike comes](https://www.financedigest.com/central-banks-hike-rates-again-but-a-pause-is-coming.html "Central banks hike rates again, but a pause is coming") as Sony’s games business has been squeezed by supply chain snarls feeding into hardware shortages, with the conglomerate aiming to boost PS5 production for the year-end shopping season.

While the price [hike “is a necessity given the current global economic](https://www.financedigest.com/stocks-falter-as-economic-worries-nag-nz-delivers-big-rate-hike.html "Stocks falter as economic worries nag, NZ delivers big rate hike") environment and its impact on SIE’s business, our top priority continues to be improving the PS5 supply situation,” gaming chief Ryan wrote.

Sony aims to sell 18 million units of the [hit device in the current financial](https://www.financedigest.com/uk-consumer-mood-hits-one-year-high-but-financial-gloom-persists.html "UK consumer mood hits one-year high, but financial gloom persists") year after selling 11.5 million units in the year ended March.

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](https://www.financedigest.com/analysis-to-raise-prices-or-not-consumer-goods-makers-weigh-bets-on-buyer-strength.html "Analysis-To raise prices or not? Consumer goods makers weigh bets on buyer strength") of the U.S. dollar,” Ampere Analysis analyst Piers Harding-Rolls wrote in a [blog post](https://www.financedigest.com/best-guest-blog-posting-service.html "Best Guest Blog Posting Service").

Microsoft will take advantage of [Sony’s increase to push](https://www.financedigest.com/sony-to-buy-mobile-game-developer-in-push-beyond-consoles.html "Sony to buy mobile game developer in push beyond consoles") its ‘value’ message,” Harding-Rolls added.

($1 = 0.9985 euros)

(Reporting by Sam Nussey; Editing by Edmund Blair, Jason Neely and Ana Nicolaci da Costa)


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