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Sony Defends PS Plus Price Hike, Explains Why It Won't Put Games There Day One

"We have to look at our pricing and we have to adjust to market conditions."

44 Comments

A top PlayStation boss has spoken out to defend the recent PlayStation Plus price increase and explain why the company does not bring its games to PlayStation Plus at launch like Microsoft does through Xbox Game Pass. Speaking to Barron's, PlayStation senior vice president Eric Lempel was asked to justify the recent PS Plus price increase, which saw the Premium tier go up by $40.

Lempel said, "Like practically everything else in the world, we have to look at our pricing and we have to adjust to market conditions." The executive added, "We want to make PlayStation Plus great. With our reboot last year and introducing the tier system, a lot of consumers have recognized that there's a lot of value in PlayStation 5."

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Lempel further stated that Sony had not previously raised prices for 85% of the world in "many years," which is a contrast from other subscription services that regularly raise prices. Sony previously raised PS Plus prices in 2017.

The new PS Plus price increases were announced in August this year. In terms of new features coming to the service, Sony just announced a movie catalog and will add PS5 game-streaming soon. Microsoft raised Xbox Game Pass prices in July. In the wider entertainment space, Apple TV+, Netflix, Hulu, Disney+, and many others have raised subscription prices in the past year.

Also in the Barron's interview, Lempel was asked for his thoughts on Xbox Game Pass, and specifically how the company launches its first-party games into the catalog. Sony does not do this with PlayStation Plus. Lempel said PlayStation Plus is "very different" from Game Pass, but he wouldn't be drawn into talking about launching first-party PlayStation games on PS Plus.

"It comes down to what you're going to get in the service in terms of the type of game and the quality of games. I can't comment on what the competition is doing. But with us, we feel we're offering a great curated catalog of games, as well as other features and services with PlayStation Plus," he said. "It's a very different offering, but it's one that resonated with consumers. Since we introduced the tiers, we've seen a third of the Plus user base opt for the upper two tiers, which was more than we had expected."

In 2022, outgoing PlayStation boss Jim Ryan said Sony does not put new games on PS Plus because the "virtuous cycle" of investment that leads to commercial payoff would be significantly derailed if Sony were to take that approach.

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faithxvoid

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I’m good on the movies, thanks. Higher tiers of PS plus we’re good while I built of my ps5 catalogue , but I got most of the classics for cheap or with ps plus monthly games .

I have a year or so until my roll over time from old ps plus premium expires, so I guess I’ll see how it plays out.

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ebonyflame

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The price hike for the two upper tiers of PS+ are perfectly understandable and MAYBE even justifiable but not for the essential tier since zero value has been added. You'll still get 2, sometimes 3, free games per month of varying quality and access to online gaming. At least with the upper tiers you get a game catalogue with a great lineup of games you can stream or download.

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sealionact

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He sounds so bitter - can’t even mention Xbox by name, while Phil regularly talks about Sony games, congratulates them on social media and doesn’t pretend that using “The one that can’t be named” will somehow help Sony’s image.

GP raised prices when they knew a 70bn investment in games was going through - Sony raised and offered some old movies and the option to pay more for newer ones.

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ENI232

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@sealionact:

What's there to mention or congratulate?? They failed last gen and are failing this gen. Halo is falling off and Forza is pretty much what Gran Turismo is. Sony is still creating and being innovative while Xbox is becoming a renting service that will only hurt the video game industry.

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sealionact

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@eni232 said:

@sealionact:

What's there to mention or congratulate?? They failed last gen and are failing this gen. Halo is falling off and Forza is pretty much what Gran Turismo is. Sony is still creating and being innovative while Xbox is becoming a renting service that will only hurt the video game industry.

Your reading skills are somewhat lacking. I said he couldn’t even mention the word Xbox, while Phil Spencer congratulates Sony on social media.
As far as “creating and innovative“ goes, Sony are releasing 12 GAAS titles before the end of 2025. How creative.

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ENI232

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@sealionact:

Why does he need to mention Xbox??!!??

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Slash_out

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Edited By Slash_out

@eni232: What to congratulate xbox on? GP being the number one gaming sub in the world. Their purchase of the N°1 publisher in the world.

Why does he have to mention xbox? He doesn't, but he purposely avoids it. While the other side doesn't.

Listen, being a fan boy is fine, but don't be oblivious or pretend you don't get things. It's petty and lame. Don't be a child and instead be an adolescent and know what you like while still being able to recognize the other side has good stuff. Even better be an adult and not care for the logo on your plastic box and see things with a wider view.

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ENI232

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@Slash_out:

Lol I'm not a fan boy. They had to make a purchase that big to stay relevant in the video game industry. You don't congradulate someone on that. Since Microsoft entered the video game industry they've been in last place console sale wise and haven't really created any big innovative games. I know there's halo and Forza but neither of those games are innovative. Only thing they did great was pave the way for online gaming. To me sega had more innovative games than Xbox has had to this date. They are turning into a rental service. Who's going to buy physical or digital games when you can get game pass, Helloooo.

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kent1590

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initially they say price increase to bring in better quality game, now defend because streaming service and market condition?The streaming service is for premium and above subscription, "Essential" tier that has no streaming service is also receiving a price hike, what worst, the streaming service is not even ready.

Market condition? AFAIK, game prices on PS store is always far more expensive compared to Steam esp indie games, some of them even double the price! They said as if they're making loss already

Good luck defending the price hike, I'm just gonna wait for my subs to expire

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Scynt

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Would sound a lot less fake and hollow company speak if they offered a tier without the free games that just let you play online for like $10 a year or something.
No one gives a **** about your free games, if PS+ wasn't the only way to play online 40-60% of their subs would vanish.

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BDRTFM

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Only Sony could get away with raising the price on an inferior product and then say it has a lot of value.

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Ives74

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Price elasticity. They're finding the upper limit they can set while minimizing loss of subs. The customers have all the control here but it's a process that takes time and gamers tend to be pretty compulsive. If people close their wallets for long enough Sony will back off. But I don't know if enough people will hold out long enough to make an impact. I mean pre orders are still a thing and there's no question that has led to unfinished and broken releases.

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gameboy8877

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Jim Ryan’s virtuous cycle

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Wahsobe

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I've been paying for my PS+ membership for years even though I virtually never play any online MP games. I do it for the monthly games, since I could usually pick it up for $40 I didn't mind paying in. That being said I'll have to eat that collection loss and maybe just pay for the occasional month when I feel like digging into the backlog. I have no intention of throwing down that kind of cash for something a rarely use. I haven't looked into it but maybe if they allow membership pauses I'll just freeze it up until I get the urge to pump out a few titles.

Very disappointed. I expected better of Sony but being so far in the lead in console sales has never been a good place for them. They're always better to consumers when they're worried.

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gyokuroGuy

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It is all right Sony, I vote with my wallet. As you can decide to increase the prices, I can decide not to sub. Not to mention PC Game Pass is whats keep me busy for the last few weeks and probably coming months. Was a long time PS Plus subscriber and played exclusively on PS, but the pricing made me realise the PC gaming freedom. Built a PC (7800X3D, 4090) and PS is collecting dust.

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philip6k

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@gyokuroguy: ok

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GalvatronType_R

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Like any other product or service, Sony can set their prices and customers can choose to buy or not. Sony have every right to do this, it's the free market.

And I will vote with my wallet and choose not to renew. The last straw was Sony sending a passive aggressive email stating that I can renew or let it expire which I will do.

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GodofHeck42

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Edited By GodofHeck42

@GalvatronType_R: the whole “vOtE wItH mY wAlLet” pro-capitalist bullshit never works. Because for every 1 person that has their little vote, 1000 more brainless droolers will mindlessly consume.

Your vote means nothing. Only way these corporations will lose is if there are policies out in place to control them:

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GalvatronType_R

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Edited By GalvatronType_R

@godofheck42: video games are frivolous luxury toys. You want the government to step in and tell Sony how to price their products so you can play with your toys for cheaper?

This is the problem with the modern 21st century gamer. If prices go up, instead of shrugging and moving on like a mature well adjusted person, they yell and scream online because they have pathetically centered their entire lives and self worth around pushing plastic buttons to make some 1s and 0s move on a screen.

I want to buy a Rolex Submariner. It’s $20,000. I didn’t yell and scream in the jewelry store, I didn’t post a screed online about how Rolex should be nationalized, I shrugged and moved on. I won’t die without a Rolex, you won’t die without PS+.

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GodofHeck42

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Edited By GodofHeck42

@GalvatronType_R: yea… I’ll just continue voting for people on the left. So that maybe one day we can have someone to get all corporations in control, not just video games (which is what I meant). Over the years more and more people have become sympathetic to socialist views. It’s really only a matter of time. But thanks though.

You were the one who mentioned “voting with your wallet”, instead of just saying “I’m not using this anymore”. I was responding to you saying how you’re going to “vote with your wallet”. There’s no such thing as “voting with your wallet” in a capitalist system. You’re not “voting” for anything. As for everyone of you, 10,000 other drooling brainlets will buy it.

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YukoAsho

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@GalvatronType_R: Ding.

It's not the government's place to intervene here, as there's no real threat to consumer well-being. It's no secret that gaming is trying as hard as it can to price people out, but screaming in a message board isn't going to do anything, especially given no one really pays attention to these stupid threads anyway. No one's looking to change the world - you go where you need to, and if that means moving on, that's what you do.

If Sony and Microsoft want to push people who aren't made of money out of the ecosystem, that's fine. There's no shortage of options for entertainment that DOESN'T break the bank. Like you said, shug and move on.

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ThePlantain

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@GalvatronType_R: You hit the nail on the head.

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ThePlantain

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@godofheck42: Ah, begging for the good old gov't to save you lol

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maltnut

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@ThePlantain: That's literally what the government exists to do. Why is it begging to expect the government to fulfill its responsibilities?

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ThePlantain

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Edited By ThePlantain

@maltnut: Last time I checked videogames didn't fall under basic or essential needs. Sure, it sucks that these corporations are being greedy but there's nothing to compel the gov't to act to protect from stuff like that.

The market often corrects itself with these thing. I do think the gov't needs to step in and stop these greedy gas and retail companies from price gouging the public under the guise of inflation. Groceries and gas are essential.

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maltnut

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@ThePlantain: If you believe in "Free Market Capitalism" these days I've got a bridge to sell you, probably more than once.

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ThePlantain

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Edited By ThePlantain

@maltnut: Sorry I'm not a Marxist. I'm also not dumb to buy anything that's being sold just because or expect the government to protect me from making bad decisions. Funny how you skipped me saying they need to protect citizens from being taken advantage of when it comes to the essentials but went "Free market bad" over a luxury item. Carry on.

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maltnut

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@ThePlantain: I skipped it because it's not relevant. Exploitative corporate practices require regulation regardless of how you try to segment the market.

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deactivated-6737ee1dc6e37

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@godofheck42: It's worked pretty well against Budweiser lol. It will never stop things overnight, but as enough people start waking up and realizing what's happening, things will change as the cashflow lessens.

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al89lan

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@godofheck42: Umm, with that kind of mindset, how would anything ever change in this world? Mind numbing. Do your part and hope others do it as well. Speak with your actions, not your words.

That being said, I also cancelled my subscription once I got that email from Sony saying they're cranking up the price. Only game I played online was 'Diablo 4', and that one is collecting dust now.

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pillarrocks

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My PlayStation Plus expires next month and I don't agree with the price hike across the tiers. I never paid full price for PlayStation Plus when it was $50-$60, I would always get it at a discounted price of $32 even $40 from third party sites that sold online memberships.

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xboxplayer1

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This is what I have to say to all the PlayStation Players out here. If you still support them, you are the fool. This is the time that, you should speak up with your wallets and make yourself heard. If Xbox did this, we would make them pay and they know that already, which is why they have done really well for us the players.

Sony knows that they can nickel and dime you all to death and no one will leave because you all are too loyal to that plastic box and it's a shame. Sometimes in life you have to take a stance and say enough is enough and until that happens Sony will keep making fools out of their gamers. Nintendo doesn't do this and neither does Xbox only Sony because they see you the gamers as a paycheck and not humans.

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dragoonmike

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Edited By dragoonmike

i very rarely ever use ps plus because i don't see any reason why i should have to pay them to play online that's what i pay my internet provider for.

the last time they uped prices was 2017 lol incorrect when they switched to a tier system they added 2 new prices so that is a price change even tho there new versions.

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philip6k

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@dragoonmike: For the infrastructure and maintenance they constantly do so you can play online......

LOL it's not just your internet provider

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StickEmUp

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While they should absolutely NOT put games on there day-one, because they have no reason to, they also have zero justification in this much of a price hike. There is no market condition justification for this. This sounds like when Jeff Bezos was in support of gas prices going up to $7, saying it was market conditions. This is price gouging.

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Feral411

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Edited By Feral411

@stickemup: weird how you say they absolutely shouldn’t put games on there day one and then complain about the price hike. Wouldn’t having those games there on release justify the price hike?

They are going to hike the price regardless so I’d rather get something for that than nothing at all.

PS Plus will never be gamepass and that’s why gamepass will always perform better, especially once Activision games start going there too

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Jaxith

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Edited By Jaxith

What a transparently greedy pack of lies... Everything he said is a self-justifying excuse. I'd actually respect it more if he would just boldly come out and say, "Because I think I deserve more money." Still a scummy outlook, but at least it'd be honest.

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hardwenzen

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GTFO.

My sub expires next month, and when it does, i will ignore ps+ like it doesn't exist. Charging to play online in 2023 is laughable, but charging as much as they do is just DA F*CK?! I hope they lose millions and millions of subs. So much so we see em panic. That's all they deserve this generation.

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Edited By HectorV

@hardwenzen: My subscription expired last month after a three months deal, and let me tell you: You won't miss a thing. Specially people like me, who only get to play after work and maybe a little more on weekends, there are very few reasons to subscribe not only to PS+, but also more than one streaming service.

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hardwenzen

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@hectorv said:

@hardwenzen: My subscription expired last month after a three months deal, and let me tell you: You won't miss a thing. Specially people like me, who only get to play after work and maybe a little more on weekends, there are very few reasons to subscribe not only to PS+, but also more than one streaming service.

That is especially true when you own a pc, which i do. So yea, bye Sony and your greed.

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gyokuroGuy

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@hardwenzen: Exactly. Until recently I was not realising how much I am missing when gaming exclusively on PS. Well, better late than never. Built a PC and never looked back. My only hope more people realise the greediness of the company.

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definer0

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Yeah just great value since price hike.. access to a selection of trash movies and PS5 streaming nobody asked for. New catalog games leave alot to be desired imo as well!

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HectorV

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@definer0: There are some indie gems in there, but 95% of the catalogue is just fluff.

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definer0

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@hectorv: There are rare exceptions with day-1 indie titles like Stray, Humanity, Tchia and Sea of Stars. Rest is just old back catalog from yesteryear. (which can still be good, but would have played them long ago)

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