Sony shares rose after the news about the rise in price of the annual PlayStation Plus subscription
On August 30, Sony announced that it would raise the cost of an annual PlayStation Plus subscription by a third in September. Investors took this decision well: at Friday’s trading, the company’s stock price rose by 3.4%.
According to Bloomberg, this is the largest daily increase since July.
Analyst Amit Garg from CLSA suggests that the rise in subscription prices will help Sony’s gaming division significantly increase revenue. He believes that by the end of fiscal 2023, PlayStation’s revenue may additionally increase by ¥100 billion ($688 million), and operating profit by ¥55 billion ($378 million). If this happens, Garth notes, Sony will start raising the subscription price regularly in the future.
Recall how the cost of an annual PlayStation Plus subscription has changed:
▪️PlayStation Plus Essential from $59.99 to $79.99;
▪️PlayStation Plus Extra from $99.99 to $134.99;
▪️PlayStation Plus Premium from $119.99 to $159.99.
