Sony will be increasing the price of PlayStation Plus by 20% on September 22 and inevitably the internet has not reacted well to the news. It’s the first price increase for PlayStation Plus since Sony introduced the service in 2010 and people don’t seem too pleased with it but here’s why it makes sense Sony would make the move.
Here’s the statement from Sony on the price increase:
Starting on September 22, 2016, prices for PlayStation Plus memberships will change to $59.99 USD/ $69.99 CAD for twelve months and $24.99 USD/$29.99 CAD for three months. The monthly plan will change to $11.99 CAD in Canada, and remain $9.99 USD in the U.S. If you are a current member, the new prices will take effect if your membership renews on or after this date.
PlayStation Plus strives to enrich your PlayStation experience through a world-class service built for our fans. This marks the first time that PS Plus membership prices will increase in the U.S. and Canada since the launch of the service in 2010. The new pricing reflects the current market conditions while enabling us to continue providing exceptional value to our members. As a member, you will continue to enjoy the benefits and features that enable shared experiences, such as online multiplayer, free games, and exclusive discounts. You will also continue to get exclusive benefits such as online game save storage and discounts across the PlayStation digital services.
If you do not wish to continue your subscription, please be sure to cancel it by turning off auto-renewal in your account settings before September 22, 2016.
We thank all of you, our PlayStation Plus members, for your ongoing support.
It’s more expensive for Sony to secure big games for the PlayStation Plus free games lineup. Typically, the free games offering usually works on a per download basis whereby the amount Sony pay is linked to the amount of users who download said game. With over 40 million PS4s sold now and over 20m PS+ users, it must be getting really expensive for Sony to secure bigger games to offer.
By introducing a price increase, this theoretically means Sony can offer even better value for your PlayStation Plus subscription , especially in the wake of the ever-increasing criticism the service has been coming under in recent months.
Secondly, we must remember that PSN is a massive source of revenue for Sony. Twitter user ZhugeEX provided some details on this front that showcases just how crucial PSN revenue is to Sony.
I'll just post the image below-
Network is the fastest growing segment for Sony. Accounts for 47% of total sales. pic.twitter.com/RdvwEpwdPd
— Daniel Ahmad (@ZhugeEX) August 22, 2016
Ultimately, it makes sense that more revenue for Sony means the more revenue they have at their disposal for investing back into the PlayStation brand. After all, it’s their strongest growing sector in the entirety of the Sony corporation. We must also face the reality that this is simply a good business move for Sony. They’re planning to launch multiple pieces of new hardware this fall that will draw in a lot of new consumers that won’t even know about the price increase and this allows Sony to take advantage of that in terms of increased revenue.
It’s also worth noting that many users will most likely still pay less than the new price of $59.99 because there will inevitably be countless deals whereby users will still be able to get 12 months of PlayStation Plus for at least $10-$20 cheaper than the RRP. It’s exactly what happens with Xbox Live 12 months subscriptions where a little independent work can save you a small chunk from the total price for your subscription.
What are your thoughts on the PlayStation Plus price increase? We would love to hear them so make sure to leave a comment below.