The new U.S. tariffs have not yet come into effect, but some have already taken advantage and raised the price of their products. We’re talking about Sony and the PlayStation 5 in Europe, which has specifically gone up 10 percent, now costing €499.99, €50 more than before. But what’s the reason for this increase if it’s not because of tariffs? The company has explained that this decision is due to inflation and the economic instability we’re currently experiencing, but many believe it’s part of the upcoming trade war. We’ll tell you what’s going on because this could also end up being applied in the United States.
What’s happening?
Everything is getting more expensive, and consoles were not going to be the exception. The PS5 has just reached the standard launch price from 2020, when the console was released. And it’s not the first time it has gone up: in 2022, it went from €399.99 to €449.99, and now you’ll be charged €50 more for the same product.
And it seems like a calculated increase, but in this crisis we’re living in, it’s a very risky bet.
And the most curious thing is that, while one part of the hardware goes up, the disc drive goes down in price, going from €119.99 to €79.99. The standard edition with the built-in drive does not change and remains at €549.99, as does the Pro version, which is still priced at €799.99.
But why is it going up?
Very simple: inflation. The global inflation situation is getting worse, and monetary trends are changing. It makes sense that no company wants to get burned and lose money, so prices keep rising fast.
And Xbox? Much cheaper
The PS5 price hike has made its direct rival, Microsoft’s Xbox Series S, the most viable option for buyers. The Microsoft Series S costs €299, and has even been seen discounted below €250. Its 1TB version with a disc drive costs €349, well below the PS5 digital version, which puts Sony in a slightly uncomfortable pricing position.
Beyond the official excuse, the increase could be linked to a strategy to boost sales of the PlayStation 5 Pro, which keeps its high price and, with this adjustment, now seems more attractive in comparison. Could it be a way to get users to spend a little more and get the Pro version? Very likely, because if the difference between both consoles is small, it’s normal to decide to take the leap, like when you don’t know whether to get the medium or large meal at McDonald’s and end up going for the large because it only costs a few dollars more. Maybe this is the exact same strategy Sony wants to replicate with its consoles.
If the user feels that the difference between the cheaper console and the more complete one is small, they may decide to take the leap. And from a business perspective, that might be exactly what Sony wants.
Will prices go up in the United States too?
This crisis (or strategy) has been the perfect excuse to justify the price hikes. It’s true that the global economy is spiraling, and they’re also preparing for the tariff increases on tech products (as a result of their trade war with China and Europe). Even though the measure hasn’t come into effect yet, Sony has decided to get ahead of it with a preventive price increase, in a market (Europe) that has historically been very loyal to the brand.
This way, they’ll be able to offset costs without causing a drop in sales.
But Sony hasn’t waited for the new tariffs to hit its cost structure. It made its move first, raising prices in key regions and only touching part of the catalog. Is it a risky decision? Yes. Is it calculated? Also. Time will tell whether the market accepts this strategy or not. But for now, what’s clear is that playing with a next-gen console isn’t going to be cheaper in 2025.
