Sony Group Corporation (SONY) shares are on the rise Tuesday after the company announced a price increase for its PlayStation 5 (PS5) console in Japan. Effective September 2nd, the standard PS5 will cost 79,980 yen ($551), while the digital edition will be priced at 72,980 yen. This represents a roughly 20% increase from the previous prices.
Sony attributes the price hike to “challenging external factors,” particularly citing global economic fluctuations. Despite the price increase, the company still anticipates selling 18 million PS5 units during the current fiscal year, a decrease from the 20.8 million units sold last year.
The news comes amidst reports that Sony is planning to refresh its PS5 hardware in the coming months, potentially introducing a more powerful console to the market. This move could be seen as an attempt to regain momentum in the gaming console market, particularly as Microsoft continues to make strides with its Xbox Series X and Series S consoles.
The price increase in Japan also extends to PS5 accessories, including the DualSense wireless controller and the Pulse wireless headset.
Despite the recent challenges in the gaming market, Sony is optimistic about its gaming division’s future. According to Bloomberg, the company’s game-division profit is projected to reach ¥330 billion in fiscal 2025, exceeding guidance by 3%, thanks to the success of the PlayStation platform.
Investors interested in gaining exposure to SONY stock can consider ETFs like the BlackRock Large Cap Core ETF (BLCR) and the Calamos Antetokounmpo Global Sustainable Equities ETF (SROI).
