Sony has explained why PlayStation fans in Japan can buy a PS5 for much less than everyone else. The company admits it is losing money on each console, but says the lower price is part of a long-term plan to grow PlayStation in its home country. In an interview with Famitsu, Sony Interactive Entertainment CEO Hideaki Nishino explained that the cheaper PS5 is a “strategic investment” that will help bring more people into the PlayStation ecosystem, even with rising costs and global inflation.
The Japan-only PS5 Digital Edition launched in November 2025 for ¥55,000, or around $340. That’s much lower than the standard Digital Edition, which now costs ¥89,980, or about $555 after the recent price increase, making the exclusive model around 40% cheaper. To make sure Japanese players are the ones benefiting from the lower price, Sony also locked the console to Japan. It only works with Japanese PlayStation Network accounts and Japanese language settings.
Nishino said Sony introduced the model after seeing more PS5 consoles being exported from Japan because of exchange rate changes. The company wanted to make sure the lower-priced console reached Japanese customers instead.
Sony has not shared how much money it is losing on the console, but Nishino said the company expects to recover the cost through its wider PlayStation business over time. He explained, “We consider the PS5 Digital Edition Japanese-only model a strategic investment. While we won’t disclose specific figures, we plan to recoup the costs across our entire business operations. Although the business situation differs from that in overseas markets, we hope you understand that this is an important and necessary investment for the Japanese market.”
The move also comes as Sony looks to strengthen its position in Japan, where Nintendo has dominated the market for years. Nishino said Sony does not place more or less importance on any specific region, but admitted that the company is now actively investing in Japan because it wants to increase the number of PlayStation users there. He concluded, “We strategically consider how to allocate funds within the overall balance, and as part of that, we are actively investing in Japan because we want to further increase the number of PlayStation users there.”
For more on PlayStation, consoles and gaming as a whole, stay tuned to GameObserver.
