Home > Latest News > Sony Stock Starts To Fall, Market Concerned

Sony Stock Starts To Fall, Market Concerned

Sony Group shares are starting to fall as investors dump the stock over concerns as to the future of the Japanese business who are under pressure on several fronts as the business moves to sell products directly Vs high street retailers.

Overnight shares were down 7% after Sony trimmed its profit outlook to US$8.3 billion, reflecting the impact of recession fears on the global gaming industry.

The stock slid its most in almost six months in early trading.

Sony also revised its outlook on costs related to the acquisition of Bungie, the weaker yen, and lower expectations for third-party software sales on the platform.

Bloomberg reported that the company’s games business underwhelmed in the April-June quarter with 47.1 million PlayStation 4 and 5 titles sold, down from 63.6 million a year earlier.

Play time across PlayStation products plunged 15% in the quarter, Chief Financial Officer Hiroki Totoki said, and PlayStation Plus members fell slightly to 47.3 million.

“Although they may blame weaker PS5 sales growth of just over 4% YoY for this, the real reason looks to be higher development costs the firm has assumed through its aggressive acquisition of game developers,” said Amir Anvarzadeh at Asymmetric Advisors.

“What we think is crucial going forward is how much its newly launched game streaming service, where users have access to hundreds of older games, will eat into its game software sales.

Sony said it now expects higher revenue from its music division because of the positive currency impact.

Revenue from streaming services and anime content helped Sony in the last quarter.



You may also like
Global XR Headsets Shipments Fell 19% In 2023
Sony Unveils New 247MP Camera Sensor
EXCLUSIVE: Email Claims Sony Set To Quit TV Market Because Of “Demands Of Mass Retailers”
Sony Pauses PlayStation VR2 Production
“3x Faster” Sony PS5 Pro Tipped For 2024 Release