Sony's New Japan-Only PS5 Aims to Reclaim Market Share from Nintendo at Home Technologies

Sony’s New Japan-Only PS5 Aims to Reclaim Market Share from Nintendo at Home

In an unexpected move, Sony is set to launch a budget-friendly, Japan-exclusive edition of the PS5 on November 21. This version, named the CFI-2200B01, will feature Japanese-language support only and offer 896GB of storage, retailing at 55,000 yen (approximately $354) directly from Sony. This price is notably lower than the regular PS5 Digital Edition, priced at 72,980 yen (roughly $470). This decision comes five years after the original PS5 made its debut, raising questions about Sony’s strategy in Japan.

Sony’s Strategy in Japan

Reports suggest that the decision to release this new PS5 model is heavily influenced by Sony’s declining share in Japan’s console market. The PlayStation 5 has been losing ground to Nintendo, as their Switch consoles have captivated the younger demographic with their dual functionality as both handheld and TV-connected devices. Iconic Nintendo characters like Mario and Kirby further boost its appeal. Sales figures show the Switch 2’s launch this year surpassing even Nintendo’s expectations.

Sources indicate that Nintendo’s achievement with a budget-friendly, Japan-exclusive Switch 2 prompted Sony’s response with its new PS5. The lifetime sales in Japan demonstrate about 2.6 million units of the Switch 2 since June 2025, compared to all PS5 models’ 7.1 million units since 2020.

Initially, the original Switch faced challenges with certain game ports not performing as well as on the PS5. However, the more powerful Switch 2 is now acquiring ports of games like Final Fantasy 7 Remake Intergrade and Final Fantasy 7 Rebirth, which were once PS5 exclusives. While these ports may not rival the PS5 in graphics, they are a significant step forward from the original Switch’s capabilities.

Domestic Focus and Market Challenges

Another factor for this Japan-specific PS5 is to curb the export trend driven by the weak yen, as resellers have been targeting the Japanese market to sell abroad, particularly in China. The new model will only support Japanese language and require a PlayStation Network account set to Japan. This move aims to ensure that the next-gen console stays in the hands of local players. This model, like the standard Digital Edition, is upgradable with a separately sold disc drive for physical games.

The economic correspondent indicates that Sony’s renewed focus on the Japanese market may be influenced by its new CEO, Hideaki Nishino, who took charge in April 2025 after sharing the role with Hermen Holst. The PS5’s journey in Japan has been rocky, with price hikes over the years, starting at 43,980 yen at launch and rising to 72,980 yen by September 2024, sparking debates online. The anticipation around Monster Hunter Wilds led to a surge in gaming PC and Xbox sales as alternatives.

Looking Ahead: Rumors and Future Plans

Globally, the PS5 has faced hurdles since its release, from supply chain disruptions to a shortage of exclusive titles compelling enough to warrant an upgrade from the PS4. Sony’s push into live service games hasn’t been as successful as hoped, with several projects canceled. The costly failure of Concord and Firewalk Studios’ closure remains a blemish on PlayStation’s history.

The launch of this cheaper Japan-only PS5 is a strategic attempt to regain its footing in the domestic market. As speculation about the PlayStation 6 suggests a dockable handheld design, it hints at a future where Sony might adopt Nintendo’s successful hybrid console model.

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