As Gamescom had just begun, Sony announced a PS5 console price increase in several countries around the world, including France and Canada. But Microsoft does not intend to increase the price of its consoles, as the brand explained in August, then at the Tokyo Game Show.
Microsoft decides to absorb the additional costs linked to the difficult economic context
[Mise à Jour 16/09/2022] It was during the Tokyo Game Show 2022 that Phil Spencer, boss of Xbox, reiterated his position not to increase the price of Xbox Series X and Xbox Series S, citing a bad signal for consumers.
I could never say that we will never do one thing or another. But when you look at our consoles today, the Xbox Series X and Series S, it’s incredibly important for us to deliver value.
We love Xbox Series S’s position in the market as our most affordable console that attracts over half of our new players. We certainly said that we had no plans to increase the price of our consoles. At a time when our consumers are in more economic difficulty than ever, we believe that it would not be a good decision for us to increase the price of our consoles.
Microsoft thus decides to bear the additional logistical costs linked, among other things, to the increase in the price of raw materials and transport rather than passing them on to its customers. Sony, for its part, prefers to keep its margin, two different strategies for companies that do not have the same financial support.
— Squawk Asia (@asiasquawkbox) September 16, 2022
Original article from August 28, 2022
While PS5 consoles are now sold 10% more expensive in Europe (€550) and in Japan, Microsoft does not intend to move at this level, at least for the moment. This was indicated by a representative of the American company to Windows Central.
We are constantly evaluating our business to provide our fans with great gaming options. Our suggested retail price for Xbox Series S remains at $299 (£250, €300), Xbox Series X is $499 (£450 , €500).
For the moment, therefore, there is no price increase planned for the Xbox Series X|S consoles and we even see, on the contrary, a promotion on the Xbox Series S at this moment.
To justify its price increase, Sony cited difficult economic conditions with high inflation around the world and unfavorable currency trends. It’s a decision that will obviously not please fans of the brand, but which remains understandable given the context.
Sony did not want to lose money and decided to pass on the additional production and import costs to the consumer in order to preserve its margin and its turnover, knowing that the demand for PS5 is always greater. than the offer. The price of the PS5 has not increased in the United States since the dollar is currently a currency that is appreciating very well.
It is certain that this price difference now benefits Xbox, which now has an additional argument compared to its main competitor on the console market.