Tech

Sony ensures that the PS5 price increase has not affected demand

The Japanese giant had no qualms about raising the price of PS5. We could say that this movement was the consequence of various factors, but the truth is that the most decisive and important was the strength of the dollar which, as many of our readers will know, managed to outperform the euro for the first time thanks to the uncertainty caused by the start of the Russian invasion of Ukraine.

It is not difficult to understand, we just have to see the historical evolution that the change from dollars to euros has experienced in the last two years. In January 2021 a euro was worth almost 1.25 dollars, and at the time of writing this article its value was 0.99 dollars. What does this mean? Well, a couple of years ago we could buy five dollars with four euros, and now we need five euros and five cents to do the same.

A weak euro harms us because it reduces our purchasing power, creates uncertainty and ultimately encourages technology companies that import products paid in dollars to raise prices, it’s that simple. However, in the case of Sony, another important factor plays a role that has been key so that it has not cared to raise the price of PS5 despite the fact that this console is already two years old, the high demand.

sales ps5

The demand for PS5, and the interest generated by this console, are so high that the price increase has not affected demand at all, at least according to what Hiroki Totoki, CFO of Sony, commented during the last results conference of the Japanese company. However, the executive has made a call for caution and has said that they will monitor it in the coming quarters to see how this evolves.

This fits with the reality of the market, since today it is still impossible to buy a PS5 at its recommended price directly from the main Spanish retailers, and I can confirm that even in town stores I have seen it reach 800 euros. What can I say, law of supply and demand, and the game of the free market.

The bubble that has been generated around PS5, and the impact of resale, have caused its price to skyrocket to levels that double, and even triple, its recommended retail price. If a person is willing to pay more than 1,000 euros for this console for resale, it is normal that raising its recommended price by 50 euros has no effect.

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