The PlayStation 5 has already gone on sale in Australia, New Zealand and South Africa.
The retail launch was delayed by a few days as the new hardware was tested by the public.
The US government, however, has made it clear that the console won’t be released in the US.
It will be available only in select territories, and retailers in those territories have been told to take action against any customers who are boycotting the hardware.
The American government has also banned Sony from importing or exporting the PS4 and PS Vita.
In response to the PS 5 boycott, Sony has announced it will stop selling the PS3 and PSP in Australia and New Zealand.
However, the retailer will continue to sell the PS Vita, PlayStation 4 and PSP on its online store.
However the decision to suspend sales of the devices in Australia was made in light of the US government’s decision to ban importation of the consoles.
“The government has banned importation and sales of our popular consoles in Australia,” Sony Australia’s president, Chris Anderson, told Digital Spy.
“We have also made a number of changes to our Australian distribution plans.
We will be taking these steps now to ensure we are providing the best service for our customers.”
Sony Australia is one of the biggest retailers in the country, with the vast majority of its sales being through its online and retail stores.
Anderson added that the retailer would also continue to deliver games and software for its PlayStation 4, PlayStation 3 and PlayStation Vita consoles.
However with the PS 4 being delayed in Australia for several days, it is unclear if the console will be released there either.
“Sony is aware of the recent decision by the US Government to ban the importation or export of the PlayStation 4 or PlayStation 3 systems, and will continue working with the Australian Government to ensure our products are safe for the public,” Anderson said.
“As the government is not allowing us to export PS4 or PS3 systems, we are making this decision in the best interests of our customers in Australia.”
If the Australian government’s ban is indeed a ban on importing or selling the console, Sony will be forced to import the consoles to Australia, where they will be subject to customs checks.