Under its prior leadership, Sony Interactive Entertainment was reportedly indifferent to the PlayStation market shrinking in Japan.
A report from Japanese media outlet TV Tokyo (via Installbaseforum member Hartmann) has shed light on the internal dynamics behind Sony Interactive Entertainment’s decision to release a new Japan-exclusive PS5 model. According to the report, prior leadership within the company had developed the sentiment that “it is acceptable if the PlayStation market in Japan continues to shrink.”
The revelation comes amid a major shift in Sony Interactive Entertainment’s console strategy in the country. While global PlayStation sales have expanded, Japan has gradually become a weaker region for the brand, losing ground to Nintendo. This decline was reportedly met with indifference from prior executives, who were more focused on strong overseas performance.
TV Tokyo’s report explains that the newly announced Japan-only PS5 launching on November 21, 2025, for 55,000 yen, an 18,000-yen price cut, emerged from a renewed desire from Sony Interactive Entertainment’s to re-establish footing in its home market. This new model is “Japanese-language-only,” with its distribution strictly limited to Japan. The aggressive price cut suggests that the console is possibly being sold at a substantial loss.
The shift in approach reportedly began when Sony Interactive Entertainment executives discovered that Nintendo was preparing a Japan-exclusive version of the Switch 2. Inspired by this strategy, Sony leadership quickly approved its own Japan-focused PS5 model in just four months. A key driving force behind this reversal is the company’s new president, Hideaki Nishino, who, according to TV Tokyo, views the ongoing decline of PlayStation’s domestic presence as a major crisis. He and the Japan-based team share a sense of urgency that is pushing for Japan-focused measures.
The report also highlights an interesting angle from the Chinese market. Because the local PS5 model is subject to strict content regulations and has a limited library, unrestricted Japanese PS5 units are resold at high premiums in China. By producing a Japan-only edition, Sony aims both to counter this trend and to revert focus on local consumers.
