The increase in the price of PlayStation 5 indicates a similar trend in the future

Sony may not be at Gamescom 2022, but the company still managed to make headlines at the show even though it probably would have preferred not to. .

BingMag.com The increase in the price of PlayStation 5 indicates a similar trend in the future

Sony may not be at Gamescom 2022, but the company still managed to make headlines at the show even though it probably would have preferred not to. .

The announcement of the increase in the price of PlayStation 5 in most of the world markets in a post on the official blog of PlayStation was the news that attracted the attention of the news at once, and even the announcement of this news in the middle of Gamescom did not cause attention. Cut to that.

So let's talk about the price hike not just Sony's price hike, but the broader issue of upward pressure on various pricing in the industry, which has been brought into sharp focus by Sony's decision. In the audience's point of view, there are many concerns about the increase in the price of PlayStation 5, which of course are mixed with bitter jokes that point to the lack of special difference in the difficulty of obtaining PlayStation 5 (due to problems in providing inventory). This isn't the first time we've seen a price hike in gaming hardware in recent months, and it's unlikely to be the last.

In fact, the price increase for the PlayStation 5 is significantly less than the 25 percent increase in the price of the Quest headset. 2 meta companies have been in the last month. Especially considering that the price of Quest 2 headset was expensive before that. It doesn't seem likely that we will see many such increases and softer rates, however the general idea of price increases is not outlandish given the current conditions and may be just beginning.

While consumers may Attributing this primarily to corporate greed, the reality is that it is inflation that has increased costs dramatically. Of course, there are some companies in the product supply chain that exploit the space created to increase their profit margins, but usually game companies that are in direct conflict with customers are not included in this category.

BingMag.com The increase in the price of PlayStation 5 indicates a similar trend in the future

Inflation is not the only cause of this price increase. The fact that the U.S. has not seen a price jump despite inflationary pressures shows how much the chaotic and volatile currency markets are to blame for this. The strength of the dollar effectively buffers inflationary pressures for US consumers, while the relative weakness of currencies such as the euro and yen imposes additional costs on consumers in those regions.

Some of these consumers The ones that have suffered the most are in fringe markets with currently weak currencies like Australia and New Zealand, where gaming hardware and software have almost always been more expensive than core markets like the United States.

Currently, no single factor There isn't much to blame for the increased cost being passed on to consumers, and almost all of it has to do with the macro economy, which is far above the decision-making executives at hardware and software companies. Inflationary pressures exist in all areas, both directly and indirectly with the games business, and there are no signs of abating in the coming months.

Opinions and words said by some people on the Internet And they put the console's high price and unavailability side by side, it is mostly a joke, but there is also a hidden and serious side hidden in these words. The fact that the black market can still command an exorbitant price for the PlayStation 5 console means that Sony's price hike likely won't have a significant impact on the device's sales curve, at least initially.

If Sony With luck, as long as they can manage console inventory to consistently cover consumer demand, inflation will be under control and price cuts will be possible, bringing the console back to original price or even lower. change the situation from the current situation where the price of PlayStation 5 console is higher than its closest competitor.

BingMag.com The increase in the price of PlayStation 5 indicates a similar trend in the future

All Price increases will not necessarily be in the form of direct price increases for existing products. Many electronics and entertainment companies are taking a more subtle approach, keeping the prices of existing products the same but offering new devices or improved versions of older devices at a higher pricethus moving their overall pricing structure up a notch without They would have to make an awkward decision like raising the price of an existing product and angering fans.

This option is not realistic for Sony, as it is unlikely to release new hardware from the PlayStation 5 for at least another year or two. supply Likewise, it's probably not a realistic decision for Microsoft either.

On the other hand, it might make perfect sense for Nintendo. They've been releasing the Nintendo Switch console for quite some time now, and most likely now are developing their next console or a new version of their future console and can apply this price increase as normal when their next console is released and not change the price of the current Switch console.

Hardware price increase for consumers who There are new consoles or other devices on the market, it's a big thing, but it also has a disruptive effect on the industry. At least in theory, they cut off a significant portion of the industry's broad audience, especially if the price of software is to rise as well, as there seems to be strong evidence for. This shouldn't come as a surprise, though it will no doubt come as a surprise to many consumers. Game prices are subject to many of the same inflationary pressures that threaten hardware. This is also exacerbated by the ever-increasing cost of development and the increasingly complex nature of games in terms of technical requirements.

On the other side of the equation, most game software is actually sold at a very low price in real terms price gouging. The occasional $10 at the time of the release of new generations of consoles is not even compatible with the inflation of recent decades, and even if the inflation rate is to be taken into account, the current rates are much lower. We have already covered this in more detail in another article. The length of those decades has been covered by increasing complexity in the pricing structure rather than price increases; Games are now sold at a wider range of prices, the rise of season passes and the rise of digital special editions, and sophisticated business models such as in-app payments are filling some of the revenue gap. To some extent, the upward pressures on software pricing over recent decades have been masked by increased complexity in the pricing structure rather than price increases. Something that, of course, the fans were not interested in, and this issue is becoming more intense every day.

Undoubtedly, the anger of consumers about the increase in the price of software will be even more than the increase in the price of hardware (for consumers who currently own Consoles and graphics cards are high-end, anyway, hardware price hikes will mean little). will be. However, the alternative solution may be even more unpleasant as it may encourage large companies to make more heavy use of other business systems and things like day one add-on pack content.

Read more: PlayStation 5 price increase lowest It will affect console sales

There is no good solution here that will make everyone happy costs are naturally rising and inflation is on the rise, and even pressured audiences won't change that. . This money has to come from somewhere, so our best hope in this situation is that the solutions companies come up with will be less harmful to consumers and protect the industry's future growth prospects.

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