The actions from Sony Group Corp are in sharp decline following the drop in profits and al collapse in video game sales. Let’s find out all the details together.
Sony: Shares down after falling profits and collapsing video games
Recently, Sony said it expects a operating profit of 1.11 trillion yen ($ 8.3 billion) for the current fiscal year, down from previous years 1.16 trillion yen. The gaming and network services group, which hosts the business of PlayStationwas responsible for the entire overhaul, with a reduction of 16% open 305 billion there and 255 billion there.
Sony has also revised its predictions because of the costs associated with the acquisition of Bungiedell’weakening of the yen and of lower expectations for third party software sales on the platform.
In the quarter April-June, the gaming industry of the company has sadly disappointed everyone. The company reported 47.1 million stocks for PlayStation 4 and 5 sold, down from 63.6 million the previous year. Il play time of PlayStation products it dropped 15% in the quarter while the subscribers to PlayStation Plus they fell slightly to 47.3 million.
Amir Anvarzadehfrom Asymmetric Advisors, said:
While PS5’s weak sales growth of just over 4% year-on-year is to blame, the real reason seems to be the increased development costs the company has taken on through the aggressive takeover of developers. of games. We believe it is crucial to understand how much the recently launched game streaming service, where users have access to hundreds of old games, will affect game software sales.
Investors have been looking for signs that Sony is capable of overcome the current macroeconomic uncertainty relying on activities other than the PlayStation. But the company also has cut sales forecasts for the image sensor industry.
Unfortunately the difficulties of the supply chain will continue to worry electronics manufacturers this year. Indeed, the COVID pandemic and the invasion of Ukraine by Russia are affecting the shipmentson the production capacity It is on cost of materials.
Sony’s April-June operating profit of 307 billion yenexceeded the average estimates of 286.7 billion. The results of films and music were favored by the weakness of the yen and Sony said it expects revenue from the musical division thanks to the positive impact of the currency. Finally, revenues from streaming services and anime content contributed to supporting the good results.