PlayStation 5 Gets Price Hike in Select Markets Due to inflation

cageymaru

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Sony has announced a price increase for the PS5 in select international markets. They also announced the USA MSRP will stay the same for now.

New recommended retail price coming to select markets in the EMEA, APAC, and LATAM regions, plus Canada.
Jim Ryan --- President & CEO, Sony Interactive Entertainment

The global economic environment is a challenge that many of you around the world are no doubt experiencing. 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 across Europe, Middle East, and Africa (EMEA), Asia-Pacific (APAC), Latin America (LATAM), as well as Canada. There will be no price increase in the United States.

The new RRPs below are effective immediately unless otherwise noted.*

  • Europe
    • PS5 with Ultra HD Blu-ray disc drive – €549.99
    • PS5 Digital Edition – €449.99
  • UK
    • PS5 with Ultra HD Blu-ray disc drive – £479.99
    • PS5 Digital Edition – £389.99
  • Japan (effective Sept. 15, 2022)
    • PS5 with Ultra HD Blu-ray disc drive – ¥60,478 yen (including tax)
    • PS5 Digital Edition – ¥49,478 yen (including tax)
  • China
    • PS5 with Ultra HD Blu-ray disc drive – ¥4,299 yuan
    • PS5 Digital Edition – ¥3,499 yuan
  • Australia
    • PS5 with Ultra HD Blu-ray disc drive – AUD $799.95
    • PS5 Digital Edition – AUD $649.95
  • Mexico
    • PS5 with Ultra HD Blu-ray disc drive – MXN $14,999
    • PS5 Digital Edition – MXN $12,499
  • Canada
    • PS5 with Ultra HD Blu-ray disc drive – CAD $649.99
    • PS5 Digital Edition – CAD $519.99
While this price increase is a necessity given the current global economic environment and its impact on SIE’s business, our top priority continues to be improving the PS5 supply situation so that as many players as possible can experience everything that PS5 offers and what’s still to come.

Thank you for your continued support.

*Select markets in EMEA, APAC, and LATAM not listed above may also receive price increases. Please check with your local retailer.


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DukenukemX

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That's odd considering that GPU prices are falling fast. Anyone looking to buy a PS5 should probably build a desktop PC, or upgrade the existing one with a cheap GPU. It has gotten to the point that a RTX 3060 or a Radeon RX 6600 is cheaper than a PS5, at least here in USA
 

Armenius

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That's odd considering that GPU prices are falling fast. Anyone looking to buy a PS5 should probably build a desktop PC, or upgrade the existing one with a cheap GPU. It has gotten to the point that a RTX 3060 or a Radeon RX 6600 is cheaper than a PS5, at least here in USA
The value of the USD doesn't seem to be falling as fast as other fiat currencies around the world, so I would wager I guess as that being the reason.
 

jlbenedict

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That's odd considering that GPU prices are falling fast. Anyone looking to buy a PS5 should probably build a desktop PC, or upgrade the existing one with a cheap GPU. It has gotten to the point that a RTX 3060 or a Radeon RX 6600 is cheaper than a PS5, at least here in USA

Hell... I have never saw a PS5 on a store shelf... even this far after release.. at least in my area..
 

Armenius

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Cause they were mostly sold online. I doubt any store got PS5 to sell locally.
A few of my local Gamestop locations sold them off the shelf. Target has also been selling them locally, but they still only last few hours before they're all gone. Best Buy does local pickup for online orders only.
 

DukenukemX

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The value of the USD doesn't seem to be falling as fast as other fiat currencies around the world, so I would wager I guess as that being the reason.
Probably but I doubt raising prices will do anything but reduce sales. The Euro is just now worth less than the dollar, and Sony is already increasing prices? Quick look at Amazon shows that the PS5 is for sale, by invitation only. Ebay shows prices to be around $700, so there is some scalping being done, but this just feels like a reactive move to capitalize on high demand. Also, it's not like everyone else isn't increasing their prices as well.

As it is right now I can actually build a decent gaming PC for as much as a scalper edition PS5 off Ebay. Again, American prices because I know other countries are fucked when it comes to buying PC parts.
https://pcpartpicker.com/list/Nj9WKp
 

Flogger23m

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Probably but I doubt raising prices will do anything but reduce sales. The Euro is just now worth less than the dollar, and Sony is already increasing prices? Quick look at Amazon shows that the PS5 is for sale, by invitation only. Ebay shows prices to be around $700, so there is some scalping being done, but this just feels like a reactive move to capitalize on high demand. Also, it's not like everyone else isn't increasing their prices as well.

As it is right now I can actually build a decent gaming PC for as much as a scalper edition PS5 off Ebay. Again, American prices because I know other countries are fucked when it comes to buying PC parts.
https://pcpartpicker.com/list/Nj9WKp

At $700 those ebay sellers are barely breaking even. Around $85 in fees, plus shipping (around $40 if not more). Console itself will cost around $550 after tax. That gives them about $25 in profit, which isn't really worth it for a high value item that can easily get stolen or broken. For such low margins and such a high risk they must either be getting them from a distributor and don't pay sales tax and pay less than the $500. Or, they're struggling to sell old hardware they bought from Best Buy months ago.
 

Sycraft

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The value of the USD doesn't seem to be falling as fast as other fiat currencies around the world, so I would wager I guess as that being the reason.
It doesn't tend to during times of worry. Right or wrong, it is the world's reserve currency and right or wrong, investors perceive it as being a safe place to put your money. So, when times get uncertain, capital flees to the USD. Goes double since investors are more worried than usual about the Pound and the Euro, two other popular safe assets, due to the UK leaving the EU and the war in Ukraine.
 
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DukenukemX

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At $700 those ebay sellers are barely breaking even. Around $85 in fees, plus shipping (around $40 if not more). Console itself will cost around $550 after tax. That gives them about $25 in profit, which isn't really worth it for a high value item that can easily get stolen or broken. For such low margins and such a high risk they must either be getting them from a distributor and don't pay sales tax and pay less than the $500. Or, they're struggling to sell old hardware they bought from Best Buy months ago.
Most likely they're trying to not lose too much money. The scalpers, or Ebay sellers as you'd call them, were taking advantage of a situation and are now losing due to foreseen and yet unforeseen consequences. Even used GPU's are nearly the same price as new ones from Ebay. Pretty clear a lot sellers on Ebay are unwilling to lower prices.
 

LukeTbk

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Probably but I doubt raising prices will do anything but reduce sales. The Euro is just now worth less than the dollar, and Sony is already increasing prices? Quick look at Amazon shows that the PS5 is for sale, by invitation only. Ebay shows prices to be around $700, so there is some scalping being done, but this just feels like a reactive move to capitalize on high demand. Also, it's not like everyone else isn't increasing their prices as well.

As it is right now I can actually build a decent gaming PC for as much as a scalper edition PS5 off Ebay. Again, American prices because I know other countries are fucked when it comes to buying PC parts.
https://pcpartpicker.com/list/Nj9WKp
are you talking in the US, is it relevant to the European hike price ?

Ebay.fr show ridiculous price for the PS5 it seem:
https://www.ebay.fr/sch/i.html?_from=R40&_trksid=p2380057.m570.l1313&_nkw=play+station+5&_sacat=0

880-1000 euro
https://www.ebay.fr/itm/25478214502...+loDyJplGkOE9oWxZczNj81fQ=|tkp:Bk9SR5iZnKzcYA

I really doubt the price increase can change anything to the short time sales has it seem still just seem impossible to simply buy a PS5.
 

Flogger23m

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Most likely they're trying to not lose too much money. The scalpers, or Ebay sellers as you'd call them, were taking advantage of a situation and are now losing due to foreseen and yet unforeseen consequences. Even used GPU's are nearly the same price as new ones from Ebay. Pretty clear a lot sellers on Ebay are unwilling to lower prices.

They're unwilling to lower because that is essentially the break even point. Even when you can get a console for $400 at Amazon/Walmart/Best Buy, ebay sellers will be higher because they obviously have higher costs that the big stores. I know with Nintendo consoles in the past they might have been slightly cheaper. I got my 2DS XL and Switch from ebay sellers for slightly less than the big stores. But the bigger consoles always seem to cost over MSRP. I think it has to do with lower margins and higher shipping costs. A smaller box can fit in a cheap shipping service but the bigger it goes the more expensive it gets relatively for small sellers.
 

DukenukemX

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They're unwilling to lower because that is essentially the break even point. Even when you can get a console for $400 at Amazon/Walmart/Best Buy, ebay sellers will be higher because they obviously have higher costs that the big stores. I know with Nintendo consoles in the past they might have been slightly cheaper. I got my 2DS XL and Switch from ebay sellers for slightly less than the big stores. But the bigger consoles always seem to cost over MSRP. I think it has to do with lower margins and higher shipping costs. A smaller box can fit in a cheap shipping service but the bigger it goes the more expensive it gets relatively for small sellers.
How a Ebay seller got the console is most likely through scalping. They didn't buy it for the same price as Best Buy or Wallmart, so of course they need to raise prices to profit. The problem for these people is that nobody cares, and they will lose money. I don't care if you went out and bought a PS5 for $500, then put it on Ebay for $650, only to find that nobody will pay that much. They knew eventually the demand for PS5's will drop, and the supply will increase to the point that anybody now can get a PS5 for MSRP. That's why Sony is confident to raise prices because whoever is in the market will pay the new raised price over the scalper price. As for the scalpers, that'll be a lesson they won't forget.
things-i-learned-from-doing-my-first-workshop.jpg
 

Flogger23m

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How a Ebay seller got the console is most likely through scalping.

Depends on the person. Plenty of sellers, that is what ebay is for. But they'll never get the discounts the big stores get. Especially when it comes to shipping rates, Amazon and the like pay less than even a small business. Amazon is so big they're even started doing deliveries themselves. That is why ebay sellers are always priced higher. Rest of the people are those that likely bought something, never used it, and want to sell it but want to break even. Unrealistic and they'll likely have to accept the loss.

The few people left that went to Best Buy and purchased to flip are probably slim to zero at this point. Those people were buying from the same stores everyone else was and supply was limited. They've long since sold their handful of consoles off.
 

DukenukemX

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Depends on the person. Plenty of sellers, that is what ebay is for. But they'll never get the discounts the big stores get. Especially when it comes to shipping rates, Amazon and the like pay less than even a small business. Amazon is so big they're even started doing deliveries themselves. That is why ebay sellers are always priced higher. Rest of the people are those that likely bought something, never used it, and want to sell it but want to break even. Unrealistic and they'll likely have to accept the loss.
I'm sure all the new PS5's are Ebay was buyers remorse. :cautious:
The few people left that went to Best Buy and purchased to flip are probably slim to zero at this point. Those people were buying from the same stores everyone else was and supply was limited. They've long since sold their handful of consoles off.
At this point it's just a bunch of people with left over inventory. Wouldn't shock me if some of the PS5's have been sitting on Ebay for as far back as 2020.
 

sharknice

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Most likely they're trying to not lose too much money. The scalpers, or Ebay sellers as you'd call them, were taking advantage of a situation and are now losing due to foreseen and yet unforeseen consequences. Even used GPU's are nearly the same price as new ones from Ebay. Pretty clear a lot sellers on Ebay are unwilling to lower prices.

I'm sure a lot of them are thinking that, and probably hoping prices start going back up.

The problem with that logic is that if no one buys they are out $600 instead of just $50 if they cut their losses and sold at market value.
And new hardware prices typically decrease over time so the longer they hold onto it the less they will recover.

We do have a lot of inflation though.
 

vegeta535

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I am surprised there are still PS5 up from early Sunday morning on walmart.com. Demand has finally peaked it seems.
 

Sycraft

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I am surprised there are still PS5 up from early Sunday morning on walmart.com. Demand has finally peaked it seems.
Demand isn't nearly as limitless as it was for GPUs. The problem with mining is that, if it is profitable enough, miners have insatiable appetites. Sure they might have 1000 cards already, but another thousand would make even MORE money. Not the case with game consoles, once a consumer has one, they are happy and don't want another of the same console. I'm sure demand will pick up around Christmas again but as the companies have been working full blast to produce consoles, they'll get the pipeline full soon enough.
 

LukeTbk

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I am surprised there are still PS5 up from early Sunday morning on walmart.com. Demand has finally peaked it seems.
Could be a local issue but I did tried to add it to the cart from time to time and it always give me an error (for the $550 bundle)while the $680 and above offer seem to work no problem.
 

vegeta535

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Still allows me to go threw a the way to payment info. Couple people at work purchased one today. Theirs wont ship til the 9th tho.
 
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