The recent PS5 price increase may not negatively affect console sales numbers, given the continued increased demand for the console.
Even two years after the console was first released, it’s still hard for a lot of gamers to get hold of a device PlayStation 5. Sony’s latest piece of gaming hardware remains elusive for many due to speculation, availability, and other issues. Recently, Sony added another barrier for many players by increasing the price of PS5 due to the global economic environment. Although it has yet to announce a price increase in the US, plenty of other regions have seen console retail value growth.
So far, regions like the UK, Europe and Japan have all been set for PS5 price hikes, and while the numbers aren’t exponential, they could theoretically be enough to prevent some from buying the console. However, according to data and analytics firm Ampere Analysis, even as the PS5 price increases, console sales may see “little impact.” Ampere Research Director Piers Harding-Rolls predicted that the current demand for the PlayStation 5 means Sony will not need to change its sales forecast.
Harding-Rolls explained that while “some consumers will be disappointed,” such as those who were saving up to buy a PlayStation 5 or those who were struggling to find one, a price increase of “about 10%” isn’t enough to significantly affect console sales. Also according to Harding-Rolls, Sony was forced to increase the price of the PS5 due to increased supply chain and distribution costs. Also, there have been several chipset issues that have severely affected the production of game consoles such as the Nintendo Switch and PS5.
The chip issues that have plagued the gaming industry aren’t likely to end anytime soon according to analysts, but the PS5 still appears to be pulling some impressive sales numbers out nonetheless. Sony recently revealed that it sold 2.4 million PlayStation 5 units in the first quarter of 2022, which was somewhat less than expected, but it didn’t deter the gaming giant from believing it could meet its console sales goals. Sony still wants the PlayStation 5 to surpass the PS4 in terms of sales by the end of fiscal year 2024.
Regarding the PS5 competitor Xbox Series X/S, Microsoft has yet to confirm whether its latest console will see a price increase. While PS5 sales initially dominated the gaming market in 2020 and 2021, Xbox has made a comeback, and Xbox Series X has managed to beat PS5 in terms of sales on multiple occasions.
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source: amp analysis