Sony's PlayStation 5 To Hit Shelves During 2020 Holiday Season

Sony Corporation SNE  will be releasing its PlayStation 5 video game console in December 2020.

What Happened

Sony has made an announcement on the official website saying it would be releasing the next version of its PlayStation console. The previous model, PlayStation 4, was released in November 2013.

Bloomberg has reported that the new console could cost up to $450 due to a scarcity of components, which has escalated manufacturing costs.

Why It Matters

The PlayStation range of gaming consoles competes with Microsoft Corporation’s MSFT Xbox consoles. PlayStation 4 sales have topped 91 million, while rival Xbox has sold 60 million units.

In the 2019 holiday season, Sony sold 5.6 million PlayStation 4 consoles, according to Business Insider, citing the lower cost of the device as a draw.

The upcoming console may face stiff competition from Nintendo Co Ltd.'s NTDOY Switch released in China in 2019, which includes a cheaper Switch Lite model as well as its Switch console, which is priced in the $200 range.

Price Action 

Sony shares traded 1.45% lower at $63.01 in the pre-market session in New York on Thursday. The shares had closed the regular session 0.57% higher at $63.94.

The company’s shares traded at USD 62.43 at end of the trade in Tokyo, on Thursday, lower by 3.89%.