Why is the PS5 So Expensive? (Is it Worth the $1000 Price Tag?)

The PlayStation 5 was probably the most awaited gaming console of all time, and it didn’t disappoint. 

This next-gen console is capable of playing all current and future triple-A titles in 4K. However, it’s still very expensive almost 2 years after release. So, why is it so costly?

The PS5 is mainly expensive because of supply and demand. Due to the chip shortage and Sony’s marketing strategy, there are not enough PS5s for all the gamers that want them. Changes in gaming habits during the pandemic also contributed to the outrageous PS5 prices.

This article looks at why the PS5 is so expensive in 2022. Read on to find out whether you should wait before upgrading.

About PS5

The PS5 is Sony’s fifth and latest gaming console. It was announced in 2019 as the PS4’s successor and released on November 12, 2020. 

It’s part of the ninth generation of consoles (next-gen) along with Microsoft’s Xbox Series S and Series X.

PlayStation 5 came with huge changes that improve its performance compared to PS4 and other eight gen consoles. 

These include a storage upgrade from Hard Disk to SSD, an AMD GPU with 4K 120fps and ray-tracing capabilities, and hardware-accelerated 3D audio effects. As a result, it can run even the most demanding games in 2022 without a struggle.

Other important features include backward compatibility for most PS4 and PlayStation VR games and a dual sense controller with haptic feedback.

Playstation 5 Price in the USA

All versions of the PS5 are pretty pricey and hard to find. Here are PS5 prices at popular outlets:

PS5 Digital Edition Price

The PS5 digital edition is an all-digital version of the regular PS5. It does not have a disc drive and you have to log into your PlayStation account to download and buy games.

The digital edition launched at $399 but is selling for upwards of $800 in most outlets.

How Much Is a PS5 at Walmart?

Walmart is probably the first stop for anyone who’s looking to buy a PS5 in a physical store. 

Prices start at $600 for the digital edition and get to upwards of $1000 for a disc version with extra bundles.

How Much Is a PS5 at Gamestop?

GameStop is another great place to look for a PS5 thanks to their wide variety that includes used and refurbished units. Prices start at $450 for a used disc PS5 and rise to more than $1000 for brand new consoles.

PS5 Price Amazon

Amazon also has a wide selection of PS5s due to the high number of vendors. Prices start at $400 for the digital version and get to around $1200 for the disc version.

PS5 Price Best Buy

PS5s are not always in stock at best buy. But when they are, they sell for close to the MSRP.

Why Is PS5 So Expensive Right Now?

When Sony announced that the PS5 was going to retail for $499, gamers were ecstatic. It was going to give them the same features as a high-end PC for a fraction of the price. 

However, 2 years later and the same gamers are paying double the MSRP for the console. Why?

1. The Chip Crisis

Gaming consoles are computers, so they need microchips to work. Unfortunately, there has been an ongoing chip crisis for the past two years. Manufacturers can’t find microchips, so they’ve dialed production back. 

Since Sony is selling fewer consoles than they had initially planned, they had to increase the prices to remain profitable.

2. Supply and Demand

As mentioned earlier, most gamers were waiting for the PS5. So when it was released, the first units sold in seconds! 

There’s a theory that scalpers had created bots to buy out all the consoles on launch day and throughout November.

If this is factual, their plan worked because PS5s were later sold in used marketplaces for ridiculous prices.

Even in 2022, the demand for PS5s is insatiable. In stores like best buy where the console is sold at MSRP, new stock sells out in minutes.

3. Sony’s Marketing Strategy

Some people speculate that Sony actually made fewer PS5s than they had the resources to, hoping that they will sell out and create a shortage. In their strategy, they would reduce supply to increase perceived value.

Since some people were unable to buy the PS5 at launch, their desire to own one has only increased. 

Seeing their friends and favorite streamers playing with the console they can’t get will make them want it even more.  

This might culminate in another PS5 launch at the original, or higher prices. And since so many people have been left out for the past two years, they will pay gladly.

4. Changes in Gaming Habits

With most people spending more time at home during the pandemic, the number of console gamers has risen considerably. 

People who were content playing a small game on their phones during a work break were now sitting in front of the screen for hours. When the PS5 was released, the temptation was just too hard to resist.

When Will PS5 Price Drop

It’s unclear when PS5 prices will drop because there’s still a huge shortage. The chip crisis is also far from over although experts believe it will subside in 2023. 

However, since Sony keeps producing new shipments, eventually most people will have the console and the demand will reduce.

Is the Expensive PS5 Worth It?

A PS5 might not be worth it in 2022, at least not for $1000. For one, there are very few PS5 games and no exclusives. 

This is likely to continue for the next two years because game developers know that most gamers haven’t gotten their hands on the PS5. Till then, PS4s will continue to run all the latest games albeit at cinema quality.

In addition, for $1000, you can get a good gaming PC that will outperform a PS5 in every game and allow you to make a PowerPoint presentation when you’re done.

Read Also: Why are Wii Games So Expensive?

How to Get PS5 at a Reasonable Price

There are two main ways to get a PS5 for a good price. The first is to queue on PlayStation Direct. This might take some months or even a year, but you will get your PS5 for the MSRP.

The second option is to look for a refurbished or used unit. Outlets like Gamestop have this option and the consoles are often good as new.

Below is a useful video on the PS5 initial setup and gameplay.