Tuesday, March 28, 2023

Why hasn’t the price of the PlayStation 5 increased in the US?

The declaration of the PlayStation 5 price increase in several regions of the planet, shared this Thursday (25) by Sony, continues to cause controversy on social networks. While netizens criticize the company’s stance, others breathe a sigh of relief for having been left out of the areas affected by the policy, as was the case in Brazil and the USA.

But why hasn’t the console’s price changed in the United States? Despite an inflationary and interest rate crisis in the country, the dollar remains strong, especially against currencies such as the euro and the yen. So it’s to be expected that Sony wants to maintain its profitability, which already operates on very thin margins and comes from a 37% drop compared to the year-over-year index.

In practical terms, buying a PlayStation 5 at launch price in Japan (49,980 yen) is converting, in current exchange rates, to around US$366.44. Meanwhile, in Europe, the same business model reaches US$ 498.71 per unit — taking into account the initial value of € 499.99. In the latter case, taxes are excluded on the American market.

Another factor to consider is competition. In Europe, PlayStation is relatively strong compared to Xbox, despite being behind Nintendo Switch for the seventh straight month in number of units sold (via GamesIndustry.biz). However, the brand faces a much more resistant Microsoft in America and must keep its prices stable in order not to lose popularity.

Playstation 5 Editions
Source: Sony

In Asia, the disparities in currency trends are much more noticeable and reveal a difference of almost US$ 130 in relation to the suggested price in dollars. Thus, it is estimated that the policy adopted in Japan, for example, is in the interest of recovering losses resulting from adverse economic conditions.

Learn about the new PlayStation 5 values

In all, four continents were affected by Sony’s new pricing policy. The impacts of the global economic situation resulted in immediate increases in the sale values ​​of PlayStation 5. However, according to the manufacturer, Japanese consumers will only see the new tables in stores from September 15th. Click here to learn more.

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Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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