In a move that has taken the gaming world by surprise, Sony has announced a new, Japan-exclusive model of the PlayStation 5. The revelation came during a recent State of Play broadcast, detailing a console that will not only be cheaper but also region-locked, a strategy that directly mirrors Nintendo's approach with the popular Switch 2.
This bold gambit signals a significant shift in Sony's global strategy and a renewed focus on a domestic market where the PlayStation brand has seen a steady decline.
A Strategic Price Cut in Response to Nintendo
The new PS5 model is priced at ¥55,000 (approximately $355), a substantial discount compared to standard models. This decision comes amid reports of PS5 price increases in other regions, highlighting the unique pressure Sony is facing in Japan.
According to a translated report from TV Tokyo, this is a direct and calculated response to the success of the localized Nintendo Switch 2. The report, with key points translated by Hartmann, a member of the Install Base forum, confirms that Sony executives greenlit the price cut just four months after the Switch 2's June release date, aiming to mirror their rival's strategy.
The parallel is striking. Nintendo's Japan-only Switch 2, priced at ¥49,980 ($322), is locked to the Japanese eShop and has strict language restrictions—a measure effective in thwarting international scalpers. Sony is now adopting a nearly identical playbook. TV Tokyo's analysis suggests that Sony is willing to sacrifice per-unit profits from the lower PS5 price in exchange for market share and relevance in its home territory.
Reversing a Decades-Long Trend
The new strategy is being spearheaded by Sony Interactive Entertainment (SIE) CEO Hideaki Nishino, who assumed his role on April 1st, 2025. In a clear departure from previous leadership, Nishino is pivoting to re-prioritize the Japanese market.
This decline can be traced back to the PS3 era, when Sony made a conscious decision to prioritize the global market. This shift came at the expense of smaller Japanese developers, who found it increasingly difficult to produce games for the more costly HD consoles. As former Sony executive Shawn Layden once noted, this created a rift, with many studios struggling to adapt. This historical context is explored in a piece by The Gamer on the struggles of Japanese studios since the PS3 era.
Nishino's challenge is steep. By cutting the price by around $120, Sony is making a aggressive play to reverse this long-standing trend and win back Japanese gamers.
PlayStation's Uphill Battle Against the Nintendo Juggernaut
Despite the bold move, PlayStation may be fighting a losing battle against Nintendo's dominance in Japan. The Switch 2 has maintained a furious sales pace that is difficult to match.
As highlighted by Push Square in their analysis of the Japan-specific console, the Switch 2 had sold a staggering 2.6 million units in Japan by November 2025. To put that into perspective, the PS5, which launched in 2020, has only sold around 7 million units lifetime in the country. The sales disparity is stark, and the new, more affordable region-locked PS5 appears designed specifically to address the sluggish sales of the digital edition console.
Industry watchers are closely monitoring the performance data to see if Sony's bet pays off. Weekly sales threads on forums like Install Base provide a real-time look at the battle for market share.
Looking to the Future
For now, the region-locked PS5 is Nishino's opening salvo to set the stage for a PlayStation revival in its homeland. The long-term strategy may extend beyond consoles. Rumors of a PS6 handheld have circulated for years, and such a device could allow Sony to finally capitalize on Japan's lucrative mobile gaming user base.
The success of this new Japan-only PS5 will be a critical test. It’s a clear admission that a one-size-fits-all global strategy doesn't work and that winning back Japan requires a dedicated, localized, and price-conscious approach. The gaming world will be watching to see if this nostalgic tactic can secure a brighter future for PlayStation in the land of its birth.
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