PS5 Price Increase Hits Japan: Is The Rest Of The World Next? Analysts Weigh In

The PS5 is getting pricer — at least in Japan.

What Happened: Sony Group Corp. SONY has quietly raised the price of its PlayStation 5 in Japan, sparking conversations among gamers and industry analysts alike.

The PS5 in Japan will cost 60% more for the disc version and 82.5% for the digital edition. The decision is rooted in economic shifts, as the Japanese yen weakens against the dollar and general inflation rises.

“Japan is coming out of literally decades of deflation, prices are generally going up for consumer goods over here, and Sony is simply jumping on that bandwagon,” Serkan Toto, an analyst at Kantan Games, told IGN’s Rebekah Valentine.

Daniel Ahmad, senior analyst at Niko Partners, echoed similar sentiments, adding that “Sony cites a challenging external environment, including fluctuations in the global economy, for the reason behind the three price increases. Japan is on the extreme end, but other markets have seen 1 or 2 price increases too, which is unique for console hardware.”

In dialogue with IGN, Ahmad also noted that export restrictions on Japanese consoles to other markets, particularly China, played a role in the decision.

No Global Price Impact?

Although Sony's Japanese price hike might have raised alarm bells for some, analysts like Ahmad and Toto reassured that the increase is likely contained to Japan for now.

Moreover, Michael Wagner of Newzoo pointed out that Sony is adapting to Japan's shifting economic landscape, not necessarily foreshadowing broader global price hikes. Still, as inflation continues to pressure consumers worldwide, industry watchers aren't ruling out future adjustments in other markets.

“Japan is on the extreme end,” Ahmad explained. “But the weakened yen against the dollar is certainly one reason. In 2020, the PS5 launched for what was the equivalent of $480. Today, that would be equal to $345, hence price increases to what is essentially $550.”

What About The PS5 Pro?

The timing of this price increase has fueled speculation about the rumored PS5 Pro, expected to launch at an even higher price point. While Sony hasn't officially announced this upgrade, analysts seem convinced that it's only a matter of time.

“I have no doubt a PS5 Pro is coming,” said Toto. “We can expect the PS5 Pro to cost $600 to $650 in the US. Now, I am curious what Sony will do in the Japanese market where the current model costs 79,980 yen. For that price, you can get two Switches and almost an additional Switch Lite here. Will they dare to offer the PS5 Pro for 100,000 yen or even more?”

Michael Wagner offered a slightly different perspective: “When the PS4 Pro version came to market, we saw a decrease in the cost of the base model. If a PS5 Pro is on the horizon, we have no reason to believe Sony will change their pricing strategy for this generation.”

As for how effective a PS5 Pro would be, the analysts were split. Toto believes the upgrade could account for 10-15% of overall PS5 hardware sales by the end of the console's lifecycle, while Wagner was more cautious. He pointed out that many gamers are focused on titles that don't necessarily require hardware upgrades, such as “Fortnite” or “Minecraft.”

Industry-Wide Impacts

As the gaming industry watches Sony's moves, other console makers might feel pressure to follow suit. Ahmad hinted that the upcoming PS5 Pro release could influence the pricing of Nintendo ADR's NTDOY long-awaited Switch successor, especially in Japan, where price sensitivity has always been a factor.

“Given the increase in costs for producing hardware, it’s unlikely Nintendo will be able to price the Switch successor as low as the original Switch was at launch,” Ahmad added.

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