The Ripple Effect: Will PlayStation Follow Xbox’s Pricing Lead?

Following Microsoft’s recent adjustments to Xbox console pricing, the gaming industry is abuzz with speculation about Sony’s next move. David Gibson, a leading analyst at MST Financial, suggests that price increases for both the PlayStation 5 (PS5) and the anticipated PS5 pro are not onyl possible but probable. This potential shift could considerably impact consumers and the competitive landscape.

Projected Price increases: What Gamers Can Expect

According to Gibson’s projections, gamers could see a substantial increase in the Manufacturer’s Suggested retail Price (MSRP) of PlayStation consoles, possibly reaching up to $200. This would place the standard PS5 with a disc drive at $699.99, while the higher-end PS5 Pro could command a price of $899.99. Such a price jump would undoubtedly force consumers to re-evaluate their gaming hardware choices.

Microsoft’s Strategy: Absorbing Tariffs or playing the Long Game?

While some Xbox Series X models are already priced at $729.99,Gibson believes Microsoft is currently absorbing the impact of tariffs,specifically the notable 145% tariff on Chinese imports in the US. this strategy, while potentially resulting in short-term losses on console sales, could be a calculated move, anticipating a future trade agreement between the US and China. It’s a risky gamble, but one that could pay off if tariffs are reduced or eliminated.

microsoft is absorbing the impact of tariffs…but it may be waiting for the two countries to reach an agreement.
David Gibson, MST Financial

Sony’s Hardware Focus vs. Microsoft’s Multiplatform Approach

The core difference in strategy between the two giants lies in their revenue models. Microsoft is increasingly focusing on multiplatform game releases and subscription services like Game Pass, especially as xbox console sales growth slows. recent reports indicate collaboration with ASUS on the “Kennan” portable console, but a new customary Xbox console might not appear until 2028. In contrast, the PlayStation brand remains heavily reliant on hardware sales for its revenue stream.This dependence makes Sony more vulnerable to the impact of tariffs and production costs.

The PC Gaming alternative: A Double-Edged Sword

The potential $899.99 price tag for the PS5 Pro could push some consumers towards PC gaming as a more viable alternative. However, tariffs also pose a threat to the PC gaming market, potentially leading to price increases and shortages of pre-built PCs and individual components. This creates a complex situation where both console and PC gaming are susceptible to economic pressures. Sony could leverage these market conditions to justify price adjustments, arguing that the entire gaming landscape is facing similar challenges.

Global Precedent: price Hikes Already in Effect

Sony has already increased the MSRP of its consoles in several key markets,including Europe,the United Kingdom,Australia,and New Zealand. These regions could see further price adjustments in the future. Moreover, the rising costs are not limited to hardware. With Microsoft and Nintendo already setting a new price threshold of $79.99 for some first-party titles, it seems unlikely that PlayStation can maintain its high-budget projects at the previous $69.99 price point. The era of cheaper games might potentially be coming to an end.