Cheaper region-locked PS5 targets Switch 2, with Sony taking losses to regain support in Japan
Sony's announcement of a region-locked PS5 at a recent State of Play surprised some fans. While other buyers face PS5 price increases, the Japan-exclusive console will cost ¥55,000 ($355). A new TV Tokyo report reveals that the move is a direct response to the localized Switch 2. Sony Interactive Entertainment (SIE) CEO Hideaki Nishino aims to turn around the declining PS5 sales in the country.
Key points from the Japanese video were translated by Hartmann, an Install Base forum member. The broadcast confirms that Sony decided to release a cheaper console to mirror Nintendo’s strategy. According to the report, executives signed off on the PS5 price cut four months after the June Switch 2 release date.
At ¥49,980 ($322), the Switch 2 connects only to the Japanese eShop and has language restrictions. While these measures thwart international scalpers, it’s unclear if Nintendo profits from the hardware. In Sony’s case, TV Tokyo explains that the company is willing to sacrifice profits resulting from a lower PS5 price.
With a price cut of around $120, the decision may seem like a gamble for PlayStation. Even so, Hideaki Nishino wants to reverse a trend that accelerated in the PS3 era. Sony made a conscious decision to prioritize the global market at the expense of smaller Japanese developers. These studios also found it difficult to produce much more costly HD games.
PlayStation may be fighting a losing battle
Nishino didn’t assume his post until April 1st, 2025. In a departure from past leadership, he is again focusing on the domestic market. However, it may be difficult for PlayStation to match Nintendo’s furious pace.
By November 2025, as Push Square highlights, the Switch 2 had already sold 2.6 million units in Japan. By comparison, PS5 sales only total around 7 million, even with some versions debuting in 2020. The more affordable region-locked PS5 may address the particularly slow sales of the digital console.
Sony could capitalize on the lucrative mobile user base in Japan with the rumored PS6 handheld. For now, Nishino hopes to set the stage for a revival in PlayStation’s homeland.
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