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the-pi-guy said:
Azzanation said:

Its really odd they want to increase the price. They already modified the PS5 be reducing its weight by 400g by cutting the heat sink in half. That would have helped save on costs and materials used as well as they have come out and said that the PS5 is already profitable. It really doesn't add up to why this increase is necessary.

As mentioned above, chip costs are going up, instead of down like they usually have.

Not to mention, the exchange rates are down, so areas where the PS5 was barely making money are now losing money.

The chip crunch is ending though, and the prices should now come down. TSMC can't continue increasing their prices anymore without alienating their customers. GPU prices are already coming crashing down hard, with most GPUs now being half the price they had half a year ago. CPU prices are also dropping, and both are due to too much offer and too low demand. 

The only ones who are still really under the chip crunch is the automotive industry, but that's due to the chips they use are all on older design processes (14nm and up), which have for the most part been replaced by more modern processes. This is on them though, not the chip fabs, and they need to fix that problem themselves.

So really, the exchange rates coupled with the inflation (making other parts and shipping more expensive) seems to me to be the only valid reason, as chip pricing could only have been an issue until a couple months before the announcement.