Following economic constraints like rising interest rates, Sony announced on Thursday that it was raising the price of its PlayStation 5 (PS5) gaming console in regions including Europe, Japan, and Britain.
The disc drive-equipped version of the system will now cost 549.99 euros ($550.81), up from the previous price of 499.99 euros in Europe. A similar price increase will also take place in Japan, according to Sony.
In the United States, where it is in a price war with Microsoft’s Xbox, which is actively growing its games subscription service, the Japanese entertainment powerhouse said there would be no price increases.
In a blog post, Sony Interactive Entertainment Chief Executive Jim Ryan stated, “we’re seeing high worldwide inflation rates, as well as bad currency developments, hitting consumers and placing pressure on various businesses.”
The price increase comes as hardware shortages and supply chain bottlenecks have put pressure on Sony’s games division. The company is seeking to increase PS5 production in time for the holiday shopping season.
Gaming head Ryan noted that while the price increase “is a necessity given the current global economic environment and its impact on SIE’s business,” addressing the PS5 supply problem “continues to be our top goal.”
After selling 11.5 million devices in the fiscal year that ended in March, Sony plans to sell 18 million units of the popular item this year.
Piers Harding-Rolls, an analyst at Ampere Analysis, stated in a blog post that “although being broad in scope, the PS5 price hikes are somewhat nuanced and are taking place in markets where the impact is being felt the most.”
“Microsoft will take advantage of Sony’s increase to push its ‘value’ message,” Harding-Rolls added.
With additional input from Reuters.