As Memory Costs Rise, Sony Is Set to Benefit From “GTA VI”

The release of “Grand Theft Auto VI” is expected to benefit Sony (6758.T) significantly, but the highly anticipated game is coming at a time when the PlayStation manufacturer is struggling with growing memory chip costs.

The Japanese entertainment company, which has a long history with Take-Two Interactive Software (TTWO.O) and is often regarded as the victor of the high-end console wars as Microsoft’s (MSFT.O) Xbox business shrinks, opens new tab, and will release its postponed “GTA VI” on November 19. According to Serkan Toto, founder of Kantan Games consulting, “GTA VI will be console only, and the vast majority of new users will choose a PlayStation 5.”

Sony survived the supply chain disruption caused by the COVID-19 pandemic and released the PS5 in 2020. AI investment-driven memory price increases have hit it hard in recent years, and it has consistently increased the cost of its consoles.

The company claims to have secured memory supplies for this fiscal year, but it anticipates that costs will remain high in the following year. Its share price has been impacted in recent months by investor worries about memory and how AI may affect its entertainment division.

According to analyst Piers Harding-Rolls of Ampere Analysis, the release of “GTA VI” will boost software sales growth and mitigate this year’s decrease in PS5 hardware sales.

Since “Grand Theft Auto V” was released in 2013, Take-Two has sold about 230 million copies. The sequel was supposed to be released last year, but it was postponed twice.

According to Harding-Rolls, “Sony would have preferred GTA VI to come out earlier in the PlayStation 5’s life to drive momentum during its rapid adoption phase rather than when the cycle is starting to burn out.

“With the release of Grand Theft Auto VI, the PS5’s price point is now higher than ideal due to pricing rises,” he stated. The standard edition of “GTA VI” for the PS5 will cost $79.99 and be available solely digitally. Players take on the role of criminals in a stylized reproduction of the United States in this immersive, open-world gaming franchise.

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