Synopsis
Sony is increasing prices for its PlayStation 5 consoles worldwide. This move comes as component costs rise, impacting supply for consumer devices. The standard PS5 will now cost $649.99 in the U.S. Similar price adjustments are happening in Europe and Japan. Analysts predict this will slow growth in the video game market this year.The tech industry's race to build out artificial intelligence infrastructure has pushed memory makers to favor higher-margin data-center chips, tightening supply for consumer devices.
The updated U.S. prices will put the standard PS5 at $649.99, up from $549.99. The Digital Edition will now cost $599.99 while the high-end PS5 Pro will cost $899.99.
Prices of the PlayStation Portal remote player will also climb to $249.99 from $199.99.
Similar increases will take effect across Europe and Japan, following what the company described as a "careful evaluation" of rising cost pressures in global supply chains.
Analysts have said the console price hikes are likely to dampen growth in the video-game market this year. "Fortnite" maker Epic Games also cited sluggish console sales among the reasons for the cut of 1,000 jobs it announced earlier this week.
In the key October-December holiday quarter, sales of Sony's PlayStation 5 fell 16% from a year earlier to 8 million units. The console has been on the market for around six years.
Sony last raised PS5 prices by around $50 in the U.S. in August last year. Microsoft also raised prices of its console, the Xbox, last year.
