Japan’s discounted PS5 is a strategic investment, says Sony CEO Hideaki Nishino

Sony Interactive Entertainment’s CEO, Hideaki Nishino, revealed that the company is deliberately selling the Japan‑exclusive PlayStation 5 at a loss, aiming to expand its user base in the domestic market.

In November 2025, Sony introduced a Japan‑only PlayStation 5 Digital Edition, retailing at a discounted ¥55,000 (about $340).

Following Sony’s recent global price hike—raising the region‑free PS5 Digital Edition to ¥89,980 ($555) in Japan—the region‑locked version, which has maintained its original price, now offers an even steeper discount of roughly 40%.

During a fresh interview with Famitsu, Nishino explained how Sony can sustain sales of the Japan‑only edition at such a low price point amid a challenging economic climate and rising component costs, underscoring the company’s willingness to absorb short‑term losses for long‑term market penetration.

Sony’s Japan‑only PlayStation 5 launch was a strategic response to a surge in overseas players exploiting the weak yen by importing region‑free consoles from Japan.

The company aimed to deter cross‑border purchases while simultaneously boosting its domestic user base by offering a heavily subsidised, Japan‑exclusive model.

According to Nishino, the decision was driven by the need to protect the Japanese market from currency‑driven export flows and to ensure that the PS5 reached local gamers in a timely and appropriate manner.

He noted that, while “countermeasure” might not be the ideal term, restricting the console to Japanese accounts allowed Sony to set a unique price point that is more affordable than the multi‑language Digital Edition, thereby revitalising the Japanese gaming community and market—an essential focus for the company.

Sony has confirmed that it is willing to sell the PS5 Digital Edition in Japan at a loss, describing the move as a calculated investment aimed at strengthening its foothold in the domestic market. While the company will not disclose exact figures, it plans to recover the costs through its broader business operations, underscoring that the Japanese market presents unique opportunities that justify this short‑term sacrifice.

When questioned about whether this focus signals a higher priority for Japan over other regions, Sony’s spokesperson clarified that the company’s ambition is to achieve success worldwide, but it is currently channeling more resources into Japan to spur growth in that particular market.

“Because we operate on a global scale, we do not single out or diminish any specific market,” the executive explained. “We strategically allocate capital within our overall portfolio, and part of that strategy involves investing in Japan to further boost the number of PlayStation users there.”

Industry analysts note that the decision to launch a discounted, Japan‑only PS5 Digital Edition last year may have been influenced by comments from Capcom president Haruhito Tsujimoto. Tsujimoto suggested that the high price of PlayStation 5 consoles was a barrier to entry for younger gamers, which he linked to the sluggish sales momentum of Monster Hunter Wilds.

In a September 2005 interview with Nikkei, the console was priced at roughly ¥80,000 (about $540). When you add the typical software purchases and ongoing subscription fees, the initial outlay climbs to around ¥100,000 (roughly $675).

Such a price point is a significant barrier for many, particularly younger gamers, and the challenge is not confined to Japan—it echoes across international markets.