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Ancient Chinese mythology has suddenly become a hot topic for the world’s gamers. A blockbuster game based on Journey to the West, one of the four great classical novels of Chinese literature, is breaking records and delivering an unexpected sales boost to Sony’s PlayStation 5.
Sony is raising the price of its PlayStation 5 gaming console by about 19 per cent to around $550 in Japan, effective from September 2. It is also increasing prices of its accessories including its wireless controller and wireless headset. During normal times, a price rise of that size for the PS5 — given that it is nearly four years old — would not have been received well by gamers.
Typically the life cycle of a gaming console is about five years. Sales of the PS5 had started showing signs of slowing during fiscal 2023, with sales narrowly missing Sony’s target of 21mn units. This had been revised down from a previous forecast for 25mn units.
But Sony’s timing works. Wages are rising in Japan, with average base pay for local workers rising at the fastest pace in more than three decades earlier this year. Elsewhere, the launch of new games including shooting game Helldivers 2 this year has sparked new demand for the PS5, making it the best-selling console in the US in July.
In China, Black Myth: Wukong, an action role-playing game rooted in Chinese mythology, could also change sales expectations for the PS5. Sales of the game had hit 10mn copies within three days of its release last week, making it one of the fastest-selling games in history.
That has meant a surge in PS5 sales in China. PS5 transaction volumes more than doubled on ecommerce group Alibaba’s shopping platform during the week before the game’s launch.
That is a feat given China has historically been a relatively weak market for PlayStation sales. Mobile and PC games dominate the country’s gaming market with only about 15 per cent of China’s gamers on consoles.
Sony’s shares rose on Wednesday bringing gains to 18 per cent in the past year. This reflects growth expectations for its gaming business. China’s video games market has been expanding with domestic revenue up 13 per cent to $43bn last year. The number of gamers in the country also rose to a record 668mn. That should leave ample room for growth for Sony in the world’s biggest gaming market.
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