Sony’s value reportedly dropped by around $10 billion last week following its revised PS5 sales forecast
Sony had previously hoped to ship a record 25 million PlayStation consoles during its current fiscal year ending in March. However, it now expects to miss that target by four million units.
Following the earnings report, Sony shares fell as much as 8.4% and closed down 6.5%. This drop was partly due to the revised PS5 hardware sales forecast and a drop in operating margin in Sony’s gaming business to 6%
Jefferies equity analyst Atul Goyal expressed that the new shipment forecast wasn’t as disappointing as the low level of operating margin. Sony’s margins should have been rising during this period instead of falling, given the increase in digital game sales and Sony’s PS Plus service.
During its latest quarterly financial earnings call, Sony said it expects PlayStation 5 hardware sales to “gradually decline” during its next fiscal year (April 2024 to March 2025). It also confirmed it plans to release no “major existing franchise titles” during this 12-month period.
Sony president and PlayStation chairman Hiroki Totoki said he wants the company to be “aggressive” when it comes to improving the gaming division’s profit margins, which can partly be achieved with a greater focus on bringing first-party games to PC.
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