Sony Group Corp (NYSE:SONY) has unveiled a lower-priced version of its flagship PlayStation 5, available exclusively in Japan.
The move marks its attempt to boost sales and counter inflation’s impact on consumers while intensifying rivalry with Nintendo Co Ltd (OTC:NTDOY) (OTC:NTDOF) in their shared home market.
New PS5 Digital Edition Pricing and Strategy
The new Japan-only disc-free PS5 “digital edition” launches on November 21 at 55,000 yen ($355), about 25% cheaper than the current model, and mirrors Nintendo’s strategy earlier this year with its Switch 2.
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The move comes after several PS5 price hikes since its 2020 debut, which stemmed from supply-chain constraints and U.S. tariffs, the Financial Times reported on Wednesday.
Strong Financial Performance Drives Stock Gains
Sony stock has gained over 41% year-to-date. The stock gained over 4% after the company reported upbeat fiscal second-quarter 2025 results on Tuesday.
Sony’s consolidated revenue climbed 5% to $21.09 billion (3.11 trillion yen), topping analyst projections of $20.04 billion.
The Game & Network Services division—home to the PlayStation platform—posted a 4% revenue increase to 1.11 trillion yen, with operating income up 13% to 120.4 billion yen, driven by higher PS5 sales.
Sony sold 3.9 million PS5 units in the quarter, compared with 3.8 million a year earlier.
Overall, consolidated operating income grew 10% to 429 billion yen.
Sony raised its full-year fiscal 2025 revenue forecast to $82.76 billion (12.0 trillion yen) from $81.8 billion (11.7 trillion yen), ahead of Street estimates of $81.05 billion.
The company now expects operating income of 1.43 trillion yen, up from 1.33 trillion yen, citing reduced U.S. tariff impacts.
Region-Locked Console and Future Growth Drivers
For the first time in nearly two decades, Sony has produced a region-locked console. The new PS5 can only be used with a Japanese PlayStation account and offers the same core performance as the existing digital model.
The timing also positions the company to benefit from next year’s release of Grand Theft Auto VI, one of the most anticipated games in recent years.
Competitive Landscape
Despite the discount, Sony’s PS5 will remain slightly pricier than Nintendo’s Switch 2, which sells for 49,980 yen and has sold 10 million units since June. The original Switch remains a historic bestseller at 154 million units, just behind Sony’s PS2 record of 160 million.
Price Action: SONY stock was trading higher by 3.70% to $30.24 premarket at last check Tuesday.
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