Analyst predicts PS5 price increase ‘will have minimal impact on sales’ VGC Open main menu Lengthy FIFA players MultiVersus characters Disney Dreamlight recipe list First for Video Game News Follow VGC Analyst predicts PS5 price increase ‘ will have minimal impact on sales Ampere Analysis believes Sony won’t revise its sales forecast because of pent-up demand Video Game News 25th Aug 2022 / 10:38 am Posted by Tom IvanThe newly announced PlayStation 5 price increase is likely to have “a minimal impact on sales”, data and analytics firm Ampere Analysis has predicted. Citing the challenging global economic environment, on Thursday Sony said it had “made the difficult decision” to raise PS5 prices in Europe, Japan and parts of North America, although not the US, effective immediately. Responding to the news, Piers Harding-Rolls, Ampere’s research director for games, predicted that pent-up demand for Sony’s console meant the company was unlikely to alter its PS5 sales forecast. The Last of Us Part I Rebuilt for PS5 - Features and Gameplay TrailerSubscribe to VGC on YouTube “While we believe there will be disappointment for some consumers that have been trying to buy a PS5 without success, or that were saving to buy the console just in time for the price to increase, the high pent up-demand for Sony’s device means that this price increase of around 10% across most markets will have minimal impact on sales of the console,” he wrote. “We expect Sony’s sales forecast for the PS5 to remain unchanged.” Sony shipped 2.4 million PS5 units during its first financial quarter, which is less than it had expected, but the company said last month that there was no change to its previously announced forecast of 18 million console sales for the fiscal year. During an earnings call, chief financial officer Hiroki Totoki said the company had been unable to meet consumer demand for PS5 due to parts and components shortages as well as supply chain issues, both of which he expected to improve throughout the year. At the time he also refused to be drawn on whether Sony had plans to raise the PS5 price. “Given the facts that the PS5 has been severely supply constrained since launch, with many consumers unable to buy Sony’s latest console, and the fact that Microsoft has shown no indication yet of increasing its Xbox Series pricing, there is no doubt that this price increase will have been a hard decision to make,” Harding-Rolls said. “However, with inflation and price increases being felt through the component supply chain, much of that priced in US dollars, alongside continued high costs in distribution, Sony has now had to pass on some of those cost increases to try and maintain its hardware profitability targets.” He added: “Although wide ranging, the PS5 price increases are relatively nuanced and are taking place in markets where the impact is being felt the most with an added layer of squeeze coming from the strength of the US dollar. “Price increases will take place in at least 45 markets globally, but not in the US, due again to the strength of US dollar currency. The US is the biggest console market globally, and where Sony competes with Microsoft most closely for market share.” Reality Labs increased the price of its Meta Quest 2 VR headset by $100 this month, a decision it attributed to rising manufacturing and shipping costs. Earlier this month Nintendo claimed it wasn’t planning to raise Switch prices in Japan, despite a weak yen causing other tech companies like Apple to do so. The company told Bloomberg it didn’t intend to make its hardware more expensive, while Microsoft declined to comment. Further reading 53 PlayStation 5 gets a price increase in Europe Japan and parts of North AmericaSony blames "high global inflation rates" but the US price will remain unchangedHarding-Rolls said: “At this stage there is no indication that Microsoft will be increasing its prices for the Xbox Series console. Undoubtedly, Microsoft will take advantage of Sony’s increase to push its ‘value’ message, especially around the Xbox Series S, Game Pass and its All Access offer as we enter the holiday shopping season. As such, this move hands some advantage to Microsoft.” Ampere Analysis previously predicted that PS5 would outsell Xbox Series X/S consoles two-to-one in 2022. 44 Comments Related VGC Content US PlayStation shipments were reportedly up 400% last month1 hour ago PlayStation Stars is giving top members priority chat support in the west too5 days ago Sony says the latest PS5 update improves system performance 5 days ago The PlayStation Stars loyalty program is now live in North and South America5 days ago Popular Now on VGC1 Harley Quinn voice actor criticises Chris Pratt Mario casting ‘ It should be Charles’ 2 Phil Spencer could be teasing Xbox s game streaming device in a new office photo3 Interview How PlatinumGames is betting on Nintendo expertise to shape its future4 Modern Warfare 2 will seemingly require a phone number like Overwatch 25 Platinum thinks hiring of Nintendo veteran can take the companies relationship to the next level More Video Game News September s free games with Amazon Prime Gaming have leakedUPDATE: Assassin's Creed Origins, Middle-earth: Shadow of Mordor and FM 2022 are included1 month ago1 US PlayStation shipments were reportedly up 400% last monthPS5 supply appears to be increasing as Christmas approaches1 hour ago1 Comment Overwatch 2 servers down for some as Blizzard removes two heroes temporarilyThe game's rocky launch has caused much fan frustration2 hours ago7 Xbox boss Phil Spencer is ‘ cautious’ about play-to-earn crypto games"It creates a workforce out of players," Microsoft's gaming boss says1 month ago7 CommentsBy commenting on this article you agree to adhere to VGC’s community guidelines. 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