Sony hikes PS5 prices by up to $150 citing ‘pressures’ in global economy

Sony on Friday said it will raise prices on its range of flagship PlayStation 5 consoles for the second time in less than a year, citing “pressures in the global economic landscape.”

In the U.S, the PS5 disc edition will jump from $549.99 to $649.99, a $100 increase from the last time Sony hiked prices of the console last year. The digital edition of the device will also rise $100 to $599.99. The PS5 Pro, Sony’s most powerful version of the console, gets a $150 hike to $899.99.

The price rises take effect on April 2.

“We know that price changes impact our community, and after careful evaluation, we found this was a necessary step to ensure we can continue delivering innovative, high-quality gaming experiences to players worldwide,” Sony said in a blog post.

When Sony raised prices globally last year, it was against the backdrop of continually high inflation and uncertainty caused by U.S. tariffs.

The company is now contending with an unprecedented surge in memory prices. Memory is a key component of the PS5 and prices have jumped significantly as memory makers direct their stock to huge demand from AI data centers and supply remains tight.

Sony also raised prices of the console in Japan, the U.K. and Europe. In the U.K., each PS5 model will increase by £90 (around $120).

‘Inevitable’ price hikes?

Piers Harding-Rolls, research director of games at Ampere Analysis, told CNBC that price rises were inevitable due to the increase in memory prices.

“It is likely that Sony had price protections for its components for a set period and this may well have come to an end,” Harding-Rolls said.

“With no sign of prices easing ... Sony will have made the move to protect its slim hardware margins. It wouldn’t be a surprise if Microsoft and Nintendo followed suit in the not-too-distant future.”

So far, Nintendo has held prices steady for its flagship Switch 2 console which only launched last year.

“It’s awkward for Nintendo as it won’t want to raise the price of the Switch 2 when it is trying to establish the new platform,” Harding-Rolls said.

During an earnings call in February, a Sony executive said the company aims to blunt the impact of higher memory costs by focusing on monetizing its current install base of PS5 users and further expanding its software and network service revenue.

There could be further pressure on component prices due to the war in the Middle East, Harding-Rolls said.

“A new wave of inflation is expected from the war in the Middle East, and this will compound the effect of the component price increases,” Harding-Rolls said.