Xbox Reacts To PS5 Price Hike

Microsoft has released a statement in response to Sony's decision to raise the price of the PlayStation 5. Following Sony's announcement, some wondered if Microsoft might follow suit and raises prices to mitigate the supply chain and logistical issues that have driven up production costs. That's not happening.

Microsoft said in a statement to GameSpot, "We are constantly evaluating our business to offer our fans great gaming options." However, the company is not planning to raise prices, at least not right now.

The company's statement went on to say that the existing US MSRPs for the Series S ($300 USD) and Series X ($500) will remain in place. Whether or not this could change in the future is anyone's guess.

PlayStation boss Jim Ryan said the PS5 price increase was a "necessity given the current global economic environment and its impact on SIE's business." The console is getting about 10% more expensive in around 45 global markets, but not the United States, due in part to the value of the US dollar.

The PS5 price increase is effective immediately, but whether or not it's a permanent or temporary measure is unclear. Historically, prices come down over time as component prices fall and logistical factors are made more efficient. That's not the case in the current environment, however.

Sony's decision to raise the price of the PS5 outside of the US will not have a significant impact on sales, one analyst believes.

For its part, Nintendo has said it will not raise the price of the Switch, though it is reducing the size of Switch packaging to help matters.