Sony hikes price of aging PlayStation 5 console in Japan by 19%

Sony on Tuesday announced a price hike for its flagship PlayStation 5 console, even as the device enters its fourth year on the market.

The Japanese gaming giant said its suggested retail price for the PS5 is now 79,980 yen, or $553, up 19% from the previous price. The hike will take effect from Sept. 2.

Sony cited a challenging external environment, including fluctuations in the global economy, as the reason for the price increase.

The surprise move comes as the PS5 turns four years old in November, and as unit sales of the device fell in the June quarter. However, profit and revenue at Sony's gaming division rose year on year in the quarter as existing players continue to buy games and other services for the PS5.

Investors are awaiting a refresh of the PS5 to reinvigorate sales. Analysts previously told CNBC that they expect a "Pro" version of the console to be announced this year.

Separately, Zee Entertainment and Sony on Tuesday said they settled a legal dispute over the collapsed $10 billion merger of their respective India units.

Sony shares closed 2.8% higher in Tokyo.