[Asia Economy Reporter Lee Ji-eun] Sony, a Japanese game console manufacturer, announced that it will raise the price of its flagship product, the PlayStation (PS5), by up to 20%. This decision is attributed to the dollar's strength, rapid inflation, and supply chain disruptions for components.
According to the Nihon Keizai Shimbun (Nikkei) on the 26th, Sony stated that from this day forward, it will increase the price of the PS5 by up to 20% in major markets such as Europe, China, and Canada.
Following this price hike, the PS5 will be sold in Japan at 60,478 yen (approximately 588,000 KRW), up 5,500 yen from the previous price. In Europe, it will be sold at 549.99 euros (about 730,000 KRW), an increase of about 10% (50 euros), and in China, it will be sold at 4,299 yuan (about 840,000 KRW), up 400 yuan.
However, prices will not be raised in the United States. This is reportedly because Microsoft (MS), Sony's competitor, did not increase the price of its Xbox game console.
Sony cited inflation and increased export costs due to the weak yen as reasons for the price increase. Since May of this year, supply chain disruptions have worsened due to the aftermath of COVID-19 and Russia's invasion of Ukraine, causing a shortage where supply cannot meet demand. The Chinese government's two-month lockdown of Shanghai to prevent the spread of COVID-19 also caused delays in component shipments, which was identified as another cause of the shortage.
As the shortage worsens, sales are also declining. The number of units sold between April and June this year was only 2.4 million. Sony announced that it has significantly reduced its sales target for the fiscal year ending March next year from 22.6 million units to 18.8 million units.
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