Sony announced today that there will be one PS5 The price increase to coincide with “high global inflation rates” and that the suggested retail price would increase in “select global markets” — that is, every major market except the U.S. Inevitably, this announcement didn’t go down well online.
Despite Sony stating that the PS5 price increase was a result of challenges in the global economic environment, almost every major market other than the United States has been targeted. Europe, the UK, Japan, China, Australia, Mexico and Canada have all been hit with significant price hikes for both the physical and digital versions of the console, with many markets seeing price increases up to 10%.
Why is there no PS5 price increase in the US?
This begs the question: if these price increases are a result of the global economy, why hasn’t the US been hit with a price increase?
Commenters on Twitter have pointed out the flaw in Sony’s messaging, noting how the company referring to “select markets” is actually only excluding the US from the list of major regions hit by price hikes.
People who have already seen it are downgrading this as it’s only in “select markets”. That’s basically the entire world except for the one area where they see Xbox as a serious threat.
And here in Europe we also have €80 games. Actually disaster
— Zalman (@enterzalman) August 25, 2022
Sony’s message with the PS5 price hike to everyone outside the US: 🖕
— jez @ gamescom (@JezCorden) August 25, 2022
However, while Sony hasn’t made it clear that this is why the US has been blocked, there is a solid reason – the strength of the US dollar. The dollar hit its highest level in nearly two decades this year, defying the odds at a time of major economic turmoil amid rising inflation, a falling stock market and the ongoing war in Ukraine.
The strength of the US dollar has potentially caused Sony to hold off on raising the price of the PS5 in the region for now, as the bottom line with console sales would be less likely to be affected in the region. While it’s an unconfirmed reason for the price, this makes more sense than other theories — including the suggestion that the increase is the result of a recent $6 billion class action lawsuit filed against the company.
It remains to be seen whether Sony will continue to avoid raising the price of the PS5 in the US in the future, but North American buyers will certainly be grateful that the company avoided the region — even if it upsets other markets in the process.