Sony Corp. announced that its PlayStation 5 (PS5) gaming console will go on sale in the US on Nov. 12 and will be priced at $499. Without a disc drive, Sony’s digital edition PS5 will be available for $400. Sony’s PS5 video game console will compete with Microsoft’s upcoming Xbox Series X in the holiday season.
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Tokyo-based electronics giant Sony (SNE) said that the popular role-playing game series, Final Fantasy XVI, will be a console exclusive for PS5. Other games include Hogwarts Legacy and Spider-Man: Miles Morales, which will be available in this fall for $50.
Just a day ahead of the announcement, Bloomberg reported that Sony “has cut its estimated PlayStation 5 production for this fiscal year by 4 million units, down to around 11 million” due to chip issues. However, Sony denied Bloomberg’s report on Wednesday saying that “We have not changed the production number for PlayStation 5 since the start of mass production.” (See SNE stock analysis on TipRanks).
On Sept. 15, Oppenheimer analyst Andrew Uerkwitz maintained a Buy rating and a price target of $100 (29.9% upside potential) on the stock. The analyst said that after the Xbox pricing announced last week, “the PlayStation with its similar feature set would ultimately try to match the Xbox in pricing.” He estimated that “the discless PS5 would be priced at $399 and PS5 with a disc at $499.”
Currently, the Street has a cautiously optimistic outlook on the stock with a Moderate Buy analyst consensus. The average price target of $100 implies upside potential of about 29.9% to current levels. Shares have gained 13.2% year-to-date.
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