Sony Group shares jumped to their highest level in more than a month, after it raised the price of its basic gaming subscription service, PlayStation Plus, by nearly a third, which may support the company's profits.
The gaming and entertainment giant will now charge up to $159.99 annually for the premium level of its popular service, which is indispensable for multiplayer gaming, game downloads, and free apps.
This comes after its main competitor, Microsoft, raised fees for the similar Xbox Game Pass service during the summer. Sony shares rose as much as 3.4% in Tokyo on Friday.
Both companies are betting that players will continue to pay for premium content and services, even as they cut spending during the economic downturn. Consumers from the United States to China showed a willingness to spend on services and rewards, even as they cut back on expensive goods.
Sony's move may herald a series of regular price increases, CLSA analyst Amit Grag said.
This week's sharp increase could add a net 100 billion yen ($688 million) in sales and 55 billion yen in operating profits annually. However; He warned of a decline in player spending, given weak macroeconomic conditions.
Last month, the Japanese company presented weaker financial forecasts than expected, due to the delay in emerging from the global recession in the smartphone market.
It also reported weaker-than-expected sales of its flagship PlayStation 5 device during the April-June quarter, raising concern that the company will need to spend more on marketing to achieve its goal of selling 25 million units this fiscal year.
