The PlayStation 5 Pro hits stores this Thursday, and its price has sparked concern among gamers, but increasing price tags in the tech industry have not yet deterred consumers.
Sony’s upgraded gaming console is priced at $699.99 in the United States, which is $250 more than the previous PlayStation 5 model.
In Europe, it will retail for 799.99 euros (around $860), marking a 250-euro increase, while in Japan, the price is nearly 120,000 yen ($780).
“I don’t think I’m going to buy it. I don’t want to spend that much on a console,” said Hideki Hasegawa, a 45-year-old entrepreneur in Tokyo. He reminisced about a time when consoles never cost more than 30,000 yen.
Launched in 2020, the PlayStation 5 Pro offers a chance for Sony to enhance performance, delivering faster gameplay and better graphics.
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“Simply put, it’s the most powerful console we’ve ever built and a worthy addition to the PS5 family,” said PlayStation’s lead architect, Mark Cerny, at a September event.
However, the higher price may present challenges from a marketing perspective, according to J.P. Morgan analyst Junya Ayada. Sony faced a similar issue when it released a more expensive PlayStation 4 upgrade in 2016, which did not significantly boost sales.
Sony is not the only tech company raising prices for new devices. “It’s a trend across many device categories, including smartphones, video games, AR glasses, and smartwatches,” said Jack Leathem, an analyst at Canalys.
While Apple kept the price of the iPhone 16 consistent with the iPhone 15 at $799, it’s significantly higher than flagship smartphones from five years ago. Similarly, Samsung’s foldable screen phones, like the Galaxy Z Fold 6, come with premium price tags.
“These are new market entrants with advanced technologies, and that often means higher prices,” said Brian Comiskey, a technology evolution specialist at the Consumer Technology Association.
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Rising prices are also driven by the increasing cost of raw materials, such as rare earth minerals like indium and yttrium.
The incorporation of artificial intelligence (AI) into devices has further impacted costs. “These companies need to make a profit,” Leathem explained. “They are balancing the heavy investments in AI and new technologies with price hikes.”
Despite the higher prices, consumers are still eager for the latest tech. Canalys reports nearly 310 million smartphones sold in the first nine months of the year, a 5% increase from the previous year.
“There’s been a shift in what price is considered acceptable for a phone,” said Josh Lewitz, an analyst at Consumers Intelligence Research Partners.
However, consumers are keeping their devices longer, and in markets like the United States, phone operators offer installment payment options, which make the price difference less significant. “This has made the relative price less important,” noted Michael Levin, also from Consumers Intelligence Research Partners.
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