Sony (SONY) is feeling the effects of inflation, and it’s passing them on to consumers with a PlayStation 5 price increase. This will see all versions of the PS5 undergo a price hike in the U.S. starting today. However, this doesn’t affect PlayStation 5 accessories, which will keep current prices. Sony said these new prices were the result of a “challenging economic environment” and that it was a “difficult decision.”
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Here’s a quick list of the PlayStation 5 price increases going into effect today, with each console now costing $50 more than before.
- PlayStation 5 – $549.99
- PlayStation 5 Digital Edition – $499.99
- PlayStation 5 Pro – $749.99
Sony isn’t the only company that has increased the price of its video game consoles. Nintendo (NTDOF) announced similar price increases for its original Switch earlier this month. While Nintendo increased the price of its Switch, its price for the Switch 2 was unchanged. The company didn’t attribute this to inflation, but instead said it was due to market conditions.
While Sony hasn’t mentioned game price increases, it’s possible this could happen. Nintendo started the trend of the $80 game with Mario Kart World, but keeps most titles at $70. It justified this price by citing the amount of content in the game and the development behind it. With inflation increasing development costs, Sony could use similar arguments to raise prices on its games.
Sony Stock Movement Today
Sony stock was down 1.37% on Thursday, but remained up 31.07% year-to-date. The company’s shares have also increased 54.01% over the past 12 months. Sony has performed well despite inflation and economic pressure, as the entertainment company continued to benefit from consumers choosing luxury even as prices increase.
Is Sony Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Sony is Strong Buy, based on three Buy ratings over the past three months. With that comes an average SONY stock price target of $31, representing a potential 11.77% upside for the shares.
