With the global pandemic continuing to wreak havoc on economies worldwide, many businesses have been forced to make difficult decisions to stay afloat. The latest company to find itself in this predicament is Sony, which has announced that it will raise the prices of its PlayStation 5 consoles in select markets outside the United States.
While the company has not given an official reason for the price hike, it is likely due to the difficult economic climate and the rising costs of goods and components. For example, the cost of DRAM chips used in the PlayStation 5 has doubled since the pandemic’s start.
This price hike is likely unpopular with consumers, who are already struggling with the financial impacts.
Sony Raises PlayStation 5 Prices Outside the US: Here’s Why.
The price hike will affect markets in Europe, Australia, New Zealand, and South Africa. In Europe, the PlayStation 5 will now cost €499, up from €399. In Australia, the new price is AU$749, up from AU$649. In New Zealand, the new price is NZ$799, up from NZ$599. And in South Africa, the new price is R8999, up from R7999.
The decision by Sony to raise prices on its PlayStation 5 consoles is disappointing but understandable given the current economic climate. The company is facing difficult times and needs to generate more revenue to cover its costs. However, this price hike could potentially alienate some customers who were planning on purchasing a PlayStation 5. Sony will need to be careful as it tries to balance its need for revenue with its desire to keep gamers happy.