How much did PS2 cost at launch?

When the first teaser trailer for the PlayStation 2 debuted at E3 1999, the gaming world was already buzzing with anticipation for Sony‘s follow-up to its smash hit PlayStation console. However, when Sony officially announced the PS2‘s retail price of $299 USD at launch on October 26, 2000, it sent shockwaves across the industry.

Many Were Stunned by the High Price Point

Considering the PS1 had launched for $299 just 5 years prior in 1995, most analysts and consumers had expected a lower price point for the PS2. $299 translated to about $475 in 2024 when adjusted for inflation – very high for a console at the time. For comparison, the Sega Dreamcast had just launched for $199 the year prior.

However, Sony was positioning the PS2 as more than just a games machine – it was one of the cheapest DVD players on the market. This multi-functionality allowed them to justify the steep MSRP.

Sony Took a Loss on Each PS2 Sold

In fact, Sony was taking a loss of about $100 on every PS2 sold according to manufacturing estimates at the time, making the price tag even more shocking.

They hoped to drive adoption and make back the difference through licensed game sales. It was a risky, revolutionary move that paid off in spades as the PS2 went on to become the best selling console ever.

PS2 Price vs Other Consoles (Inflation Adjusted)

Here‘s how the PS2‘s launch MSRP compares to other major console launches in history when adjusted for inflation:

As you can see, even 15 years later at the launch of the PS3, no console has come close to touching the PS2‘s inflation-adjusted pricing. It set an ambitious high bar that forced Sony to sell at a loss.

The Gamble Paid Off: 155 Million PS2s Sold

While many questioned Sony‘s approach, it‘s hard to argue with the results: over 155 million PS2 consoles have been sold globally as of 2022, making it the undisputed best-selling console ever made.

The PS2 single-handedly expanded the overall gaming market by appealing to more mainstream consumers that saw it as more than just a toy. And unlike any console before it, the PS2 managed to stay relevant for over a decade rather than just 6-7 years typical of a generation.

The launch of such an expensive, market-disrupting console was an inflection point for gaming and still impacts business decisions around new hardware releases today. By pricing the PS2 as a technically advanced, multi-function media device rather than just a video game system, Sony changed consumer expectations forever.

And it all started with that staggering $299 launch over two decades ago that caused chaos across gaming media and retail channels worldwide. Safe to say it was worth the gamble!