Sony said it has made the "tough" decision to hike the price of its PlayStation 5 console 25% in the wake of the high US tariffs on China, where much of the device's manufacturing is undertaken. The Japanese company announced the price increase for Europe and the UK, with a similar increase expected to be made in North America.
Sony hiked the price of its flagship PlayStation 5 console in Europe, Australia and New Zealand, citing a "challenging economic environment" as the reason behind the move. Sony said it has made the "tough decision" to raise prices against the "backdrop of a challenging economic environment, including high inflation and fluctuating exchange rates.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
I estimate the tariff exposure to the U.S. at $10B due to having a diversified portfolio of physical and digital products. Estimated impact of tariffs to $1.2B on the operating income for FY '26, with a subsequent recovery to growth and margins. The intrinsic value of $105B or $17 per share indicates fundamental downside, but I expect the company to close the gap within 3 years.
In the closing of the recent trading day, Sony (SONY) stood at $21.32, denoting a +0.38% change from the preceding trading day.
As a non-U.S. company quite dependent on the tastes and sentiments of consumers, Sony (SONY -2.63%) is particularly vulnerable in the current tariff war.
Sony Pictures Entertainment has appointed Jay Levine as EVP, Chief Strategy Officer and Business Operations. Levine most recently spent a year as CEO of Kevin Hart's media company Hartbeat. Prior to that, he held various executive posts over 11 years at Warner Bros.
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Zacks.com users have recently been watching Sony (SONY) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.