Sony Stock Gains on New PlayStation 6 Price Rumors

Sony (SONY) stock was up on Monday alongside rumors that the upcoming PlayStation 6 could be an extremely expensive console. According to tech leaker KeplerL2, Sony could charge as much as $699 for the PlayStation 6. This would be lower than the price of parts for the next-generation video game console, which are estimated at $750 per unit. However, it doesn’t seem likely that Sony will keep to that $699 price estimate.

Instead, KeplerL2 argued that Sony doesn’t have much of a reason to sell the PlayStation 6 for a loss. He believes the company will instead want to recoup the cost of the console, which means it could sell for nearly $1,000 per unit. This would have it join a growing list of upcoming game devices with extremely high estimated prices, such as Microsoft’s (MSFT) Project Helix, and Valve’s Steam Machine.

In fact, KeplerL2 claimed that Microsoft’s shift with Project Helix could explain the rationale for a higher price for the PlayStation 6. With Project Helix set to be more akin to a computer than a home console, Sony would be the only video game company making a true home console, as Nintendo (NTDOF), its other major rival, is focused on the handheld/home console hybrid market. Without direct competition, Sony may feel more justified in charging a higher price for the PlayStation 6.

Sony Stock Jumps Today

Sony stock was up 1.68% on Monday but was still down 20.92% year-to-date. The stock has also fallen 21.58% over the past 12 months.

SONY stock trading activity today saw some 1.69 million shares change hands, compared to a three-month average daily trading volume of about 5.35 million shares.

Is Sony Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Sony is Moderate Buy, based on one Buy and one Hold rating over the past three months. With that comes an average SONY stock price target of $28, representing a potential 38.58% upside for the shares.