- Sony Group (NYSE:SONY) bundled its existing PlayStation Plus and PlayStation Now services into one single subscription service called PlayStation Plus.
- Sony's move seems to pit it against Microsoft Corp's (NASDAQ:MSFT) Xbox Game Pass game subscription service, Reuters reports.
- The revamped Sony service combines the current PlayStation Plus, which has 48 million subscribers, with PlayStation Now, which has 3.2 million users, versus Game Pass, which has 25 million subscribers.
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- The service will not include new releases, but users can still enjoy "Returnal," "God of War," and "Spider-Man: Miles Morales."
- Microsoft accounted for 60% of the games subscriptions in North America and Europe, compared with 7% for Sony, as per Reuters.
- Sony's premium tier annual fee was $120 compared to $180 for Game Pass Ultimate.
- An annual subscription to the mid-tier PlayStation Plus Extra, lacking cloud-gaming features, amounted to over $8 monthly, compared with $9.99 for the Game Pass.
- Sony's holding back new releases may dampen enthusiasm, analysts said.
- Given the high cost of developing new games, analysts had raised concerns that pressure to bundle more content with subscriptions may eat into profit at Sony's coveted games unit.
- Analysts expected the move to drive Sony's higher-tier subscribers and boost margins.
- Price Action: SONY shares traded higher by 1.44% at $106.54 on the last check Tuesday.
