Sony Clarifies Price Increase for PS Plus, Offers Insight on Delayed Game Releases
Sony explains the rationale behind the PS Plus price increase, acknowledging the need to adapt to market conditions However, they clarify the decision to not offer games on day one, emphasizing the importance of striking a balance between value and affordability
A senior executive from PlayStation has defended the recent price increase for PlayStation Plus and explained the company's decision not to offer games at launch through PlayStation Plus like Microsoft does with Xbox Game Pass. In an interview with Barron's, Eric Lempel, the senior vice president of PlayStation, was asked to justify the price increase, which raised the Premium tier by $40.
Lempel stated that, like many other aspects of the industry, they have to consider market conditions when evaluating pricing. He emphasized the company's goal of further enhancing PlayStation Plus, mentioning the reboot and introduction of the tier system last year, which has been well-received by consumers and recognized for its value, especially with the release of PlayStation 5.
Lempel claimed that Sony had not increased prices for the majority of the world for a considerable amount of time, unlike other subscription services that frequently raise their prices. However, Sony did raise PS Plus prices back in 2017.
These recent increases in PS Plus prices were declared in August of this year. Along with this, Sony also revealed that they would be introducing a movie catalog to the service and would soon offer PS5 game-streaming. It is worth noting that Microsoft raised Xbox Game Pass prices in July. Additionally, numerous entertainment platforms such as Apple TV+, Netflix, Hulu, Disney+, and others have raised subscription prices within the past year.
In the Barron's interview, Lempel was asked about Xbox Game Pass and how the company adds their first-party games to the catalog. Unlike Sony's approach with PlayStation Plus, Lempel stated that Game Pass is "very different." He refrained from discussing the launch of first-party PlayStation games on PS Plus.
Lempel emphasized that the value of the service lies in the type and quality of games it offers. He declined to comment on the competition's strategy but highlighted the curated catalog of games and additional features and services that PlayStation Plus provides. He expressed that while it is a distinct offering, it has resonated with consumers. Since the introduction of tiers, a higher-than-anticipated one-third of the Plus user base has chosen the upper two tiers.
In 2022, Jim Ryan, the departing head of PlayStation, stated that Sony does not include new games on PS Plus. This decision is to maintain the "virtuous cycle" of investment, which ensures a substantial commercial payoff.
