PS5 Players to Foot the Bill for Price Hikes

Recommended products

This page contains affiliate links. As an Amazon Associate, we earn a commission from purchases made through these links.

Console manufacturers and electronics companies are facing RAM shortages, which create challenges in securing components for production and can lead to stock limitations and increased prices. Sony’s CFO, Lin Tao, addressed investor questions about the company’s strategy to adapt to this situation. Tao stated that Sony has secured enough components to continue PlayStation 5 production through the end of 2026 and intends to maintain the current PS5 prices, despite potential increases caused by persistent chip shortages affecting RAM and storage. To offset these higher manufacturing costs, Sony plans to focus on monetizing its existing PlayStation 5 user base through increased game sales and service subscriptions. For example, the strategy may involve encouraging PlayStation Plus Essential subscribers to upgrade to Extra or Premium tiers, though Tao did not explicitly state that price increases are part of the plan. For instance, the annual subscription cost for PlayStation Plus Premium, reportedly around $160, could increase. Alternatively, instead of raising the console’s price, Sony may consider increasing game prices or selling more consoles to drive software revenue. Insiders indicate that the current generation of consoles may remain on the market beyond early 2026, potentially delaying the launch of the PlayStation 6 until 2030.

PlayStation’5 Cost Mitigation via Service Revenue and Potential Subscription Fee Increase

According to Automaton, Tao informed investors that Sony will mitigate the impact of escalating memory costs through this focus on increased revenue from game sales and services. Analysts predict a potential increase in PlayStation Plus subscription costs early next year. Sony is in ongoing discussions with suppliers to ensure the continued production of both standard and Pro PlayStation 5 models without interruption.

In Case You Missed It

Ah, February 18th proved to be quite the day for our gaming and entertainment news! Ahmed Hassan kicked things off by investigating Fuse Games’ refreshing take on season passes in his article “Season Passes are for Free Games, Says Studio Behind Star Wars: Galactic Racer”. If you’re eager to learn how they’re ensuring a premium, complete experience at launch for their upcoming Star Wars title, dive right in here Season Passes are for Free Games, Says Studio behind Star Wars: Galactic Racer. Meanwhile, Bruno Pferd sparked debate on advertising boundaries with his piece “Black Ops 7 Ad Banned in the UK”, exploring how a controversial ad led to a ban by the Advertising Standards Authority. Give it a read here Black Ops 7 Ad Banned in the UK. And speaking of Bruno, he also brought us an inspiring interview with Arden Cho, May Hong, and Ji-young Yoo about their impactful roles in ‘Warriors of K-pop’. In “K-Pop Warriors Actresses Share Film’s Impact on LGBTQIAPN+ Audience”, they share heartwarming stories like Ejae meeting a fan inspired by Rumi, highlighting the film’s profound resonance with the community. Don’t miss out – check it out here K-pop Warriors Actresses Share Film’s Impact on LGBTQIAPN+ Audience.