If I live in India the PlayStation 5 isn’t magically price reduced to $100 just because my income is lower. Similarly, it doesn’t magically become $5,000 if I live in Monaco.
A PS5 is sold globally and subject to arbitrage. If someone from Monaco can easily purchase a PS5 from India for $4500 less, they or a reseller, likely will, preventing that level of price discrimination.
A game only sold on Steam so there's essentially no competition? Regional pricing based on what the market will bear is common. People in India actually do pay a whole lot less for the exact same game on Steam than someone in say, the US.
Locally purchased goods/services are somewhere in between, but the less price sensitive customers are, the less likely they're going to shop around for a deal effectively reducing price competition between businesses on the low end at least (people will still travel 60 miles to save $2000 on a $40,000 car even if they won't go two blocks to save $1.00 on a $5 carton of eggs).
