Sony Interactive Entertainment — currently facing accusations in Australia of price-fixing PlayStation games — has stirred new controversy after launching a cut-price same version as Australia PlayStation 5 in Japan for just A$542, nearly A$287 cheaper than the same model sold locally.

The catch? Australian consumers trying to import the cheaper Japanese console will discover they’ve been locked out.

Apparently Sony has revived an old and unpopular practice from the PS2 era — region-locking — effectively blocking users from playing local games or using Australian PlayStation accounts on the cheaper device.

The new “digital edition” of the PS5 is identical in specs to its Australian counterpart but comes with a minor design tweak — and a major restriction. It can only be used with a Japanese PlayStation account and accesses only Japan’s version of Sony’s online game store. Analysts say the move is designed to protect Sony’s margins in markets like Australia by preventing gamers from buying cheaper consoles and games overseas.

The timing is awkward for Sony, which is already facing a Federal Court class action in Australia. The lawsuit, led by applicant Jordan Sinclair, accuses the company of anti-competitive behaviour by forcing consumers to buy digital PlayStation games exclusively through its own online store — a move lawyers claim artificially inflates prices and cuts out third-party retailers.

Now, by locking consoles to local markets, Sony appears to be tightening its grip even further.
Ironically, local consumer electronics retailers — who have lost customers to Sony’s direct online sales — have welcomed the move, seeing it as a way to regain some lost ground.

Industry analysts suggest the Japanese price drop could boost PlayStation sales and shore up market share ahead of next year’s long-awaited release of Grand Theft Auto VI.

“A price cut in Japan could signal that Sony finally has its console costs under control,” said MST Financial analyst David Gibson in an interview with the Financial Times Japan.

Sony has broken with tradition this console cycle. Rather than reducing prices over time, the company has increased them — including a $75 hike in the US earlier this year. In Australia, the PS5 Digital Edition now sells for A$829, up from A$749.

At the time, Sony called the move a “difficult decision” prompted by a “challenging economic environment.” Nintendo and Microsoft have also lifted prices on select consoles and accessories.

In the September quarter, Sony sold 3.9 million PS5 units, slightly above last year’s figure. Analysts say that with the console now entering the latter part of its lifecycle, a price reduction in Japan might be a strategic signal to developers and consumers alike.

“We’re late-cycle with the PS5,” Gibson noted. “Cutting prices domestically now makes sense — it strengthens the market and helps prepare for the launch of the next generation.”