Sony Group saw its share price rise to its highest level in more than a month after the company’s gaming division announced a price increase for all tiers of PS Plus. The sharp hike has been heavily criticized by gamers.
PS Plus Price hike will increase Sony’s net sales and operating profit
As reported by Bloomberg, Sony’s shares rose by up to 3.4% in Tokyo when the stock market opened on Friday, indicating that shareholders approve of the controversial decision. The PS Plus price increase is expected to boost Sony’s annual net sales by as much as ¥100 billion ($688 million) and operating profit by up to ¥55 billion (nearly $378.5 million).
This is certainly great news for shareholders, but analysts warn of fallout given weak macroeconomic conditions around the globe. Those looking to limit or reduce their spending may find themselves downgrading and/or canceling their subscriptions.
Speaking to Bloomberg, CLSA analyst Amit Garg said that the PS Plus price increase could mark the start of a “series of regular price hikes.” Experts say Sony and Microsoft are banking on customers continuing to fork out money for premium content despite economic uncertainty. Apparently, consumers in the U.S. and China seem willing to continue spending on services and experiences despite cutting back on major purchases.
