Sony has quietly raised the price of its PlayStation 5 in Japan, sparking conversations among gamers and industry analysts alike. The PS5 in Japan now costs 60% more for the disc version and 82.5% more for the digital edition. This decision is attributed to the weakening Japanese yen against the dollar and rising inflation in the country.
Analysts like Serkan Toto of Kantan Games and Daniel Ahmad of Niko Partners explain that the price increase is a response to Japan’s economic shifts. Toto notes that Japan is experiencing an end to decades of deflation, leading to general price increases for consumer goods. Ahmad adds that Sony cites a challenging global economic environment, including fluctuations in the global economy, as a reason for the price increase. He also mentions that export restrictions on Japanese consoles to other markets, especially China, played a part in the decision.
While some might worry about global price hikes, analysts like Ahmad and Toto reassure that the price increase is likely confined to Japan for now. Michael Wagner of Newzoo highlights that Sony is adapting to Japan’s unique economic landscape rather than foreshadowing global price increases. However, as inflation continues to pressure consumers worldwide, future price adjustments in other markets can’t be ruled out.
The timing of this price increase has led to speculation about the rumored PS5 Pro, expected to launch at an even higher price point. While Sony hasn’t officially announced the PS5 Pro, analysts are confident it’s on its way. Toto anticipates a US price of $600 to $650 for the PS5 Pro, but is curious to see how Sony will price it in Japan. He wonders if they will dare to sell it for 100,000 yen or more, considering the current PS5 model costs 79,980 yen.
Wagner offers a different perspective, suggesting that a PS5 Pro release could lead to a price decrease for the base PS5 model, as was the case with the PS4 Pro. The analysts are divided on how effective a PS5 Pro would be. Toto believes it could account for 10-15% of total PS5 hardware sales, while Wagner is more cautious, pointing out that many gamers are focused on titles that don’t necessitate hardware upgrades.
The gaming industry is watching Sony’s moves, and other console makers might feel pressure to adjust their pricing accordingly. Ahmad suggests that the upcoming PS5 Pro release could influence the pricing of Nintendo’s long-awaited Switch successor, especially in Japan, where price sensitivity is a significant factor. He emphasizes that the increased cost of producing hardware makes it unlikely that Nintendo will be able to price the Switch successor as low as the original Switch at launch.
