by
William D’Angelo
, posted 1 day ago / 1,708 Views
Ampere’s research director for games Piers Harding-Rolls has predicted the price increase for the PlayStation 5 in select markets will have a minimal impact on the sales of the console due to how much it has been supply constrained.
“While, we believe there will be disappointment for some consumers that have been trying to buy a PS5 without success, or that were saving to buy the console just in time for the price to increase, the high pent up demand for Sony’s device means that this price increase of around 10% across most markets will have minimal impact on sales of the console,” said Harding-Rolls. “We expect Sony’s sales forecast for the PS5 to remain unchanged.”
He added there is currently no indication the price of the Xbox Series X|S consoles will be going up. He expects Microsoft to take advantage of the price difference to push the value of the Xbox Series X|S.
“At this stage there is no indication that Microsoft will be increasing its prices for the Xbox Series console,” he said. “Undoubtedly, Microsoft will take advantage of Sony’s increase to push its ‘value’ message, especially around the Xbox Series S, Game Pass and its All Access offer as we enter the holiday shopping season. As such, this move hands some advantage to Microsoft.”
He added, “Given the facts that the PS5 has been severely supply constrained since launch, with many consumers unable to buy Sony’s latest console, and the fact that Microsoft has shown no indication yet of increasing its Xbox Series pricing, there is no doubt that this price increase will have been a hard decision to make.
“However, with inflation and price increases being felt through the component supply chain, much of that priced in US dollars, alongside continued high costs in distribution, Sony has now had to pass on some of those cost increases to try and maintain its hardware profitability targets. It follows price increase across the consumer electronics sector including Meta’s Oculus Quest 2, which saw $100 increase in early August.
“Although wide ranging, the PS5 price increases are relatively nuanced and are taking place in markets where the impact is being felt the most with an added layer of squeeze coming from the strength of the US dollar. Price increases will take place in at least 45 markets globally, but not in the US, due again to the strength of US dollar currency. The US is the biggest console market globally, and where Sony competes with Microsoft most closely for market share.”
The price of the PS5 has increased in Europe, UK, Japan, China, Australia, Mexico, and Canada.
A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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