Sony’s stocks surged after raising the prices of their PlayStation Plus subscription service due to the strong demand from gamers. The stock was up by over 12% on Tuesday after the announcement that the company will increase the monthly fee for its PlayStation Plus subscription from $9.99 to $11.99 in the United States from September 22nd.
According to reports, Sony expects the price increase to generate additional income of around $2.2 billion for the company’s fiscal year ending March 2021. Sony will also offer two additional levels of service, called Ultra and Ultimate, which will be available for $14.99 and $19.99 respectively.
The news of the price increase sent stocks up on Tuesday, with the stock soaring by 12.25%, which is the biggest one-day gain since April 2019. Sony’s market value has nearly tripled since the launch of its PlayStation 5 console in November last year.
The price increase is expected to help Sony generate more revenue from its subscription service, which is already one of its most profitable businesses. PlayStation Plus subscribers have access to a range of online gaming services, including multiplayer gaming and access to exclusive offers and discounts on new and upcoming games.
Sony is not the only company to increase its prices for subscription services recently. Microsoft also recently announced an increase in its Xbox Live Gold subscription, while streaming services such as Netflix and Hulu have been increasing their prices as well.
The surge in Sony’s stocks is a sign of the strong demand for their products and services and shows that consumers are willing to pay a bit more for access to exclusive content, discounts, and the best gaming experiences on the market.
