Why did “Sony” raise the prices of PlayStation 5 in several countries around the world?
Increases in Europe and Britain
Sony revealed that the price of the standard version of the PS5 in Europe will become 499.99 euros ($ 569.9), up from the previous price of 449.99 euros.
In the United Kingdom, the price rose to 429.99 pounds, compared to 389.99 pounds. The increase also included the markets of Australia and New Zealand.
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A difficult economic environment that leads the decision
The company said that it took this “difficult decision” in response to a “difficult economic environment that includes high inflation and the fluctuation of currency rates”, which are the factors that directly affected the costs of production and distribution.
The effect of Trump customs duties on the global economy
Financial markets and global currencies have been witnessing unrest since US President Donald Trump declared what is known as “reciprocal customs duties” on more than 180 countries earlier this month.
In a later step, Trump reduced some of these drawings, and to grant temporary exemptions to certain products, such as smartphones, to allow negotiation.
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Does Sony raise prices in America as well?
Sony’s Sirkan Toto, CEO of Cantan James, said that Sony is likely to raise PS5 prices in the American market as well.
He added, “Now is the time to do so, because consumer reactions will be relatively limited,” expecting the increase will come as soon as the fate of customs duties will come.
Raising prices is not new
This is not the first time that Sony raised the prices of its famous device, as prices have already raised prices in several regions, as well as in Japan in 2024.
The release of the device is due to more than four years, which reflects the pressure of the market facing the company.
Protect the American market from price increases
Sony is likely to have chosen prices in other markets to protect the main American market from any sharp rise that may affect sales.
Reports revealed at least 10% price increases, which highlights the importance of the American market, which represents the largest share of the company’s revenues.
Fears of the loss of revenue
“Instead of raising prices directly in America, companies may increase prices globally to try to maintain the American market in the best possible way,” Christopher Dreng, co -founder of The Jim Business, said in a statement to the BBC.
He added: “It is clear that the era of low prices of gaming devices has ended.”
“Nintendo” competition and market repercussions
Meanwhile, Nintendo announced the postponement of the launch of the “Switch 2” device indefinitely, in light of its evaluation of the developments of global demand and the impact of customs tariffs.
It also decided to suspend the prior requests of the device in the United States until the economic image became clear.
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