The macroeconomic scenario, which includes component shortages and inflation, is hitting the video game sector and Sony ‘s decisions are an example of this, as the company decided to raise the price of its next-generation console, the PlayStation 5 ( PS5 ). , in several countries worldwide, including Mexico .
Other countries in which the price of the console will also be increased are the United Kingdom, Japan, China, Australia, Canada, as well as in Europe. However, the company explained that users in the United States will not be affected by this increase.
“We are seeing high rates of global inflation, as well as adverse currency trends, which impact consumers and generate pressure in many industries,” explained the president and CEO of Sony Interactive Entertainment, Jim Ryan, who detailed that the new price will be effective immediately, except in Japan, where it will start from September 15.
How much does the price of the PS5 go up in Mexico and other countries?
With this decision, Sony’s flagship console will increase by 1,000 pesos to reach 14,999 pesos in the disc version, while the digital edition will cost 12,499 Mexican pesos.
In Europe, the increase for both versions will be 50 euros and in the UK it will be 30 pounds sterling. In China, the price will increase by 400 yuan, while in Australia it will increase by 50 Australian dollars. Japan is one of the most affected countries, as it will increase by 10,498 yen, which is equivalent to about 1,500 Mexican pesos.
While the video game industry had been booming during the pandemic, the Japanese company’s move comes after it reported a 2% year-over-year decline in console sales, prompting the company to cut its earnings forecast for the whole year by 16%.
“Growth in the overall gaming market has slowed recently as opportunities for users to get out and about increase as COVID-19 infections decline in key markets,” said Hiroki Totoki, Sony’s chief financial officer.
Adding to this scenario are supply chain issues that continue to hamper the manufacturing and performance of the console market, as well as high distribution costs, Ampere Analysis analyst Piers Harding-Rolls told CNBC. who concluded that Sony had to pass on those costs “to try to maintain the profitability of its hardware targets.”
According to the estimates of Ampere Analysis, which is a market research firm, Sony has sold 21 million PS5s worldwide since its launch at the end of 2020, so the analyst expects that there will be no impact after this price increase, since there are still many consumers who had not managed to acquire it and were saving for it.
On the other hand, Sony’s competitors, Microsoft and Nintendo, have not announced any price increases in their respective consoles despite the fact that these companies also saw decreases in sales last quarter.
In this regard, Nintendo designed a strategy to ship more units, which is based on reducing the packaging of the console so that it occupies 20% less space and thus hopes to increase the quantities supplied globally by improving efficiency in transport.