According to a report published by StreetInsider.com, tech giant Sony Group Corp. (NYSE: SONY) plans to announce a new PlayStation subscription service in June to boost sales. Shares of the company closed 1% up on Tuesday at $105.80.
The new service, PlayStation Plus, will combine the Japanese firm’s PlayStation Now and old PlayStation Plus services into a single subscription model. The new PlayStation Plus service will offer three packages – PS Plus Premium, PS Plus Extra and PS Plus Essential.
Package Details
PS Plus Essential, which will cost $60 per year, $25 per quarter and $10 per month, will provide cloud storage and allow gamers to access two free online multiplayer games a month.
In addition to all the features of PS Plus Essential, PS Plus Extra will allow the download of 400 PlayStation 4 and 5 games. This package will cost $100 for a year, $40 for a quarter and $15 for one month.
The last package in the model is PS Plus Premium, which provides 740 downloadable PS, PS2, PSP, PS3, PS4, and PS5 games. Players can also try a few games before buying as well as stream games to PC, PS4, and PS5 using this package. It will be priced at $18 a month, $50 a quarter, and $120 a year.
Price Target
Overall, the stock has a Strong Buy consensus rating based on three Buys. SONY’s average price target of $150 implies 41.8% upside potential. Shares have lost 16.2% year-to-date.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Sony’s performance.
According to the tool, compared to the previous year, Sony’s website traffic registered a 7.4% decline in global visits in February. Moreover, the website traffic has declined 25.2% year-to-date against the same period last year.
Conclusion
The new Playstation subscription service will allow Sony to take on Microsoft (NASDAQ: MSFT), which offers a similar subscription model called Xbox Game Pass. Microsoft’s service allows customers to download various video games.
Download the TipRanks mobile app now.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
NeoGenomics Continues to Struggle; Stock Plunges 30%
Another XPeng Car Catches Fire, Company Responds
Mighty Micron Manages Quarterly Earnings Mastery
