What they're actually doing here is realigning prices to negate the effect of currency fluctuations. Almost every major currency has dropped significantly against the US dollar. So, in order for the consoles to get Sony approximately the same amount of money that they were intended to, the prices in those weaker currencies must go up.

That said, this seems like a monumentally stupid decision from a PR perspective. With the high cost of living and inflation being front page news all over the world lately, this really seems very tone deaf to me. I get the business case for it. But, this sounds like something that the accountants and finance guys worked out without ever talking to the marketing department.

Sony better hope that Microsoft raises their prices too. Or even if Nintendo does it, that would give them a little bit of cover. This is going to look really bad if nobody else follows suit.

Microsoft has other reasons not to raise prices though. For one, they very much need to seem consumer friendly to get the Activision deal approved. Also, since a larger percentage of Xbox sales already take place in US dollars, they are less affected by currency fluctuations. Also, Microsoft's very deep pockets make it easier for them to take the hit. In fact, as I type out this comment, the path for Microsoft seems clear as day: Do nothing, and reap the PR rewards that come at the expense of Sony.

Perfectly reasonable. The situation has changed and businesses need to adjust to the economy as well. If people are willing to buy from scalpers even at double the price, this shouldn't have a huge impact.

Well, I guess I'm in even less of a rush to get a PS5 now. I'll check back around the end of 2023 I suppose, not that there were really any PS5s available around here anyway. Last time I looked, by ordering one now I'd get my hands on one around July next year.

The pandemic fallout goes on, prices are up across the board, fuel prices especially which has more to do with Russia. Our inflation rate in Canada is now over 8%. The only reason USA is exempt is ebcause the US dollar gained more in value than the increase in inflation rates. 1 US dollar was 123 yen start of 2021, now its 136 yen, outpacing the inflation rate increase.

https://www.androidauthority.com/ps5-price-increase-2022-3200745/