The recent PS5 price increase may not negatively impact the console’s sales figures after all, due to continued strong demand for the console.
Even two years after the console’s launch, it’s still difficult for many gamers to get their hands on a PlayStation 5. Sony’s latest gaming hardware remains elusive to many due to scalpers, availability, and other issues. Recently, Sony added another hurdle to many gamers by raising the price of PS5 due to the global economic environment. Although it has yet to announce a price increase in the United States, many other regions have seen the retail value of the console increase.
So far, regions such as the UK, Europe, and Japan are all poised to see PS5 price increases, and while the numbers aren’t exponential, they could theoretically be enough to prevent some to buy the console. However, according to data and analytics firm Ampere Analysis, even with the PS5’s price increase, console sales may have “minimal impact”. Ampère’s director of research, Piers Harding-Rolls, predicted that the existing demand for the PlayStation 5 meant that Sony would hardly need to change its sales forecast.
Harding-Rolls explained that while “there will be disappointment for some consumers,” such as those who saved up to buy a PlayStation 5 or those who struggled to find one, the price increase “of around 10%” is not enough to heavily impact console sales. Also according to Harding-Rolls, Sony’s hand was forced to raise the price of the PS5 due to increased supply chain and distribution costs. Additionally, there have been a host of chip issues that have severely affected the production of game consoles such as the Nintendo Switch and PS5.
These chip issues that have plagued the gaming industry aren’t expected to end anytime soon according to analysts, but it looks like the PS5 is still putting up impressive sales numbers despite them. Sony recently revealed that it sold 2.4 million PlayStation 5 units in the first quarter of 2022, which was slightly less than expected but didn’t deter the gaming titan from believing it could hit its sales targets for console. Sony still wants the PlayStation 5 to overtake the PS4 in terms of sales by the end of fiscal year 2024.
Regarding the PS5 competitor in the Xbox Series X / S, Microsoft has not yet confirmed whether its latest console will experience a price increase. While PS5 sales initially dominated the gaming market in 2020 and 2021, Xbox has made quite a comeback and Xbox Series X has managed to beat PS5 in terms of sales on several occasions.
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Source: Amps Analysis