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Sony Defends PlayStation Plus 35% Price Hike Amid Industry-Wide Adjustments
Sony recently raised the price of its PlayStation Plus subscriptions by up to 35%. The price hike affected the cost of 12-month subscription plans for all service tiers, which include the Essential, Extra, and Premium tiers. Eric Lempel, Sony Interactive Entertainment's senior vice president and head of global marketing, has explained this significant increase.
In an interview with Barron's available on Resetera, Lempel defended the price hike by emphasizing the need to adapt to changing market conditions. He stated,
“We want to make PlayStation Plus great. With our reboot last year and introducing the tier system, a lot of consumers have recognized that there's a lot of value in PlayStation 5. Like practically everything else in the world, we have to look at our pricing and we have to adjust to market conditions.”
In addition, Lempel highlighted the rarity of price adjustments for PlayStation Plus subscriptions, noting that 85% of the world had not seen a price increase in many years. He said,
“I'm happy to say, unlike many other subscription services out there, we haven't touched the PlayStation Plus pricing for 85% of the world in many years. So, this was the first time we did something there.”
The price adjustment affected all three tiers of PlayStation Plus. The Essential tier, previously priced at $59.99 for a 12-month subscription, now costs $79.99. The Extra tier increased from $99.99 to $134.99, and the Premium tier saw a price rise from $119.99 to $159.99. Sony's official statement at the time of the price hike explained that it was necessary to “continue bringing high-quality games and value-added benefits to your PlayStation Plus subscription service.”
Price Adjustments Witnessed across the Industry
Sony's decision to raise PlayStation Plus prices came shortly after Microsoft made similar adjustments to its Xbox Game Pass subscription service. While Microsoft's price increases were relatively small, they signaled a broader trend in the industry.
In July, Microsoft raised the monthly price of a Game Pass console subscription from $9.99 to $10.99 and the Xbox Game Pass Ultimate price from $14.99 to $16.99. The competition among subscription services in the entertainment industry has led to various price hikes this year, with Apple TV+ and Apple Arcade being the most recent additions. Popular streaming services like Disney+ and Netflix have adjusted prices to accommodate evolving market conditions.
So, what's your take? What do you think about Sony's justification for the price hike? Let us know over our socials here or in the comments below.
